Matteo Cervellati Gerrit Meyerheim Uwe Sunde
Does prosperity bring democracy? Does democracy boost prosperity? This column argues that the answer to both questions depends critically on whether a country has made the transition to a human capital‑driven accumulation economy. Embedding a standard theory of democratisation in a unified growth framework, the authors show that the onset of rapid human capital accumulation (and falling fertility) is the critical hinge that shifts the trajectories of income and democracy and that amplifies the growth payoff from democratisation.
Πηγή: Voxeu