Level of economic development and political democracy revisited

This article reassesses a democracy-economic development linkage for the period 1972 to 1990. The results show that economic development has a significant effect on democratic performance in the semiperiphery and periphery, yet in an opposite direction. For the core, there is no linkage from economic development to political performance. Moreover, the finding also suggests that democracy enhances economic development only in the core and semiperiphery. This finding thus contradicts Barro's [1996] contention that more democracy enhances economic growth at low levels of political freedom, but it depresses economic growth when a moderate level of freedom has already been attained. (JEL 010).