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A Lipsetian Theory of Democratization: Development, Education, Inequality, and Resources

36 Pages Posted: 9 Feb 2017  

Raouf Boucekkine

Universite Catholique de Louvain

Paolo G. Piacquadio

University of Oslo - Department of Economics

Fabien Prieur

LAMETA, Université Montpellier I and INRA

Date Written: December 2016

Abstract

The paper reexamines Lipset’s theory of democratization, by distinguishing the role of (economic) development from that of education, inequality, and (natural) resources. We highlight two contrasting effects of education and human capital accumulation. On the one side, education prompts economic growth and enriches the budget of the autocratic elite. On the other side, education increases the “awareness” of citizens - capturing their reluctance to accept a dictatorship and their labor-market aspirations - and forces the elite to expand redistribution. Along the lines of this trade-off, our theory provides a Lipsetian explanation of the positive relationship between economic development, education, and democratization, and of the negative relationship between inequality and democratization. Furthermore, we obtain new insights on the resources-curse hypothesis and on the design of effective aid to education.

Keywords: democratization, human capital, Lipset’s theory, resource curse

JEL Classification: D720, I250, O110, O430

Suggested Citation

Boucekkine, Raouf and Piacquadio, Paolo G. and Prieur, Fabien, A Lipsetian Theory of Democratization: Development, Education, Inequality, and Resources (December 2016). CESifo Working Paper Series No. 6283. Available at SSRN: https://ssrn.com/abstract=2914232

Raouf Boucekkine

Universite Catholique de Louvain ( email )

3, Place Montesquieu
Institut de Recherches Economiques et Sociales (IRES)
1348 Louvain-la-Neuve
Belgium
+32 10 47 38 48 (Phone)
+32 10 47 39 45 (Fax)

Paolo G. Piacquadio (Contact Author)

University of Oslo - Department of Economics ( email )

P.O. Box 1095 Blindern
N-0317 Oslo
Norway

Fabien Prieur

LAMETA, Université Montpellier I and INRA ( email )

2, place Viala
Montpellier, 34060
France

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