Democracy and Institutions in Postcolonial Africa
25 Pages Posted: 1 Aug 2012 Last revised: 27 Apr 2013
Date Written: April 24, 2013
Africa has seen a steady rise in democracy since the end of the Cold War. This paper investigates two possible implications of democratization in African countries: better economic growth through improved institutions and less civil conflict through increased political participation. Instrumental variables regressions parallel to those in the literature are estimated using a new instrument: the spatial lag of democracy. This instrument varies over time, allowing for consideration of country fixed effects in IV regressions. Results show significant effects of democratization on growth and civil conflict in IV regressions with country fixed effects. The overall results indicate that there are positive impacts of institutions on economic growth and of political participation on reducing civil conflict in IV regressions with fixed effects.
Keywords: democracy, growth, civil conflict, endogeneity, institutions, Africa, fixed effects
JEL Classification: O40, P55, O43, P51
Suggested Citation: Suggested Citation