Estimating the Effects of Democratization in African Countries: A Simultaneous Equations Approach

24 Pages Posted: 1 Aug 2012

See all articles by Alan Green

Alan Green

Stetson University; Lander University

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2011

Abstract

This paper analyzes impacts of democratization in Africa, including effects of improved property rights on economic growth and greater political participation on civil violence. Democracy is endogenous to economic growth and other outcomes, which hampers most empirical analysis. This paper uses a minimum distance simultaneous equations estimation to account for all endogenous variables and country fixed effects. The method yields a test of fit of the model, which is strong. Results indicate a positive significant effect of property rights institutions on economic growth in the presence of time and country fixed effects. Estimates also show a negative significant effect of political participation on civil violence and strong effects of Aid per capita on both economic growth and civil violence.

Keywords: democratization, growth, civil conflict, simultaneous equations, Africa

JEL Classification: O40, P55

Suggested Citation

Green, Alan, Estimating the Effects of Democratization in African Countries: A Simultaneous Equations Approach (September 1, 2011). Available at SSRN: https://ssrn.com/abstract=2120855 or http://dx.doi.org/10.2139/ssrn.2120855

Alan Green (Contact Author)

Stetson University ( email )

Gulfport, FL 33707
United States

Lander University ( email )

Greenwood, SC 29649
United States

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