Democracy and State Capacity: Complements or Substitutes?

Hanson, Jonathan K. 2015. “Democracy and State Capacity: Complements or Substitutes?” Studies in Comparative International Development 50(3): 304–330.

44 Pages Posted: 20 Aug 2014 Last revised: 11 Aug 2015

See all articles by Jonathan K. Hanson

Jonathan K. Hanson

Gerald R. Ford School of Public Policy, University of Michigan

Date Written: January 1, 2015

Abstract

When it comes to social welfare, we do not have clear understanding of whether it is more important to have democracy or a capable state. Specifically, most studies do not consider the possibility that effects of democracy are conditioned or obscured by differences in the capabilities of states to deliver services effectively. This article contends that better developmental outcomes can result from either democracy or state capacity, but the combination of high levels of both democracy and state capacity is not synergistic. Empirical evidence from a time-series-cross-sectional dataset covering up to 153 countries during the 1965-2010 time period supports the conclusion that these factors partially substitute for each other with respect to improving outcomes in school enrollment and infant mortality. These findings provide a more optimistic answer to the query of Ross (2006) as to whether democracy is good for the poor. Once accounting for state capacity, we find that democracy leads to better development outcomes.

Keywords: democracy, state capacity, development, public services

JEL Classification: H41, I31, H1

Suggested Citation

Hanson, Jonathan K., Democracy and State Capacity: Complements or Substitutes? (January 1, 2015). Hanson, Jonathan K. 2015. “Democracy and State Capacity: Complements or Substitutes?” Studies in Comparative International Development 50(3): 304–330., Available at SSRN: https://ssrn.com/abstract=2482403 or http://dx.doi.org/10.2139/ssrn.2482403

Jonathan K. Hanson (Contact Author)

Gerald R. Ford School of Public Policy, University of Michigan ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

HOME PAGE: http://jonathan-hanson.net

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