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Which Came First-Democracy or Growth?
- Article from:
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Regional Economist
- Article date:
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April 1, 2008
- Author:
- HernÃ; ¡; ndez-Murillo, RubÃ; ©; n; Martinek, Christopher J
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Copyright informationCopyright Federal Reserve Bank of St. Louis Apr 2008. Provided by ProQuest LLC. (Hide copyright information)
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In today's world, most rich countries are democratic and most dictatorships are poor. In the U.S., democracy goes hand in hand with political institutions that promote economic freedom-an environment characterized by the protection of private property and the ability of individuals to engage in voluntary exchange of goods and services. However, democratic governments, even in rich countries, often enact redistributive policies that encumber economic freedom and are detrimental to growth. Therefore, although most economists agree that economic freedom promotes growth, it is not clear that more political freedom (that is, more democracy or political rights) improves economic performance as ...
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