Democracy, Inequality, and Economic Development

Investigators: CDEP Affiliate Suresh Naidu with Daron Acemoglu, James Robinson, and Pascual Restrepo

In this project, the investigators look at the impact of democracy on inequality and economic growth in a panel of countries. Using an improved measure of democracy and accounting for the dynamics of GDP, they find that a country experiencing a democratic transition has a 20% increase in GDP over the next 25 years. However, in a parallel paper, they find that democracy has no average impact on inequality, despite rich patterns.

A working paper is available as CDEP-CGEG Working Paper 022.  This project is part of CDEP's Politics, Institutions and Conflict Initiative.