publication . Preprint . Article . Report . 2007

Reevaluating the Modernization Hypothesis

Daron Acemoglu; Simon Johnson; James Robinson; Pierre Yared;
Open Access
  • Published: 01 Aug 2007
  • Country: United States
Abstract
This paper revisits and critically re-evaluates the widely-accepted modernization hypothesis which claims that per capita income causes the creation and the consolidation of democracy. We argue that existing studies find support for this hypothesis because they fail to control for the presence of omitted variables. There are many underlying historical factors that affect both the level of income per capita and the likelihood of democracy in a country, and failing to control for these factors may introduce a spurious relationship between income and democracy. We show that controlling for these historical factors by including fixed country effects removes the corr...
Subjects
free text keywords: democracy; economic growth; institutions; political development, jel:O10, jel:P16, Economics and Econometrics, Finance, Spurious relationship, Development economics, Economics, Democratization, Econometric model, Per capita income, Macroeconomics, Prosperity, media_common.quotation_subject, media_common, Poverty, Democracy, Modernization theory

8 See Marshall and Jaggers (2004) and http://www.cidcm.umd.edu/inscr/polity/ [OpenAIRE]

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publication . Preprint . Article . Report . 2007

Reevaluating the Modernization Hypothesis

Daron Acemoglu; Simon Johnson; James Robinson; Pierre Yared;