The Modern World: The Effect of Democracy, Colonialism and War on Economic Growth 1820-2000

65 Pages Posted: 5 Oct 2005

See all articles by Branko Milanovic

Branko Milanovic

World Bank - Development Research Group (DECRG); University of Maryland

Date Written: August 2005

Abstract

The paper uses the recently available data on growth rates, democracy, protectionism, and wars over the period 1820 to 2000 to look at the determinants of economic growth over the long-term. It is motivated by the following questions: what is the effect of democracy on growth, was colonialism economically bad for colonies, does protectionism affect growth negatively, what is the effect of wars? We find that own democracy has a significant positive impact on growth which increases as country's income goes up. (Overall level of democracy in the world however has no effect on growth.) The effect of colonialism is not statistically significant. Lower average level of protection in the world helps growth. Wars, whether civil or between the states, are strongly detrimental to economic growth.

Keywords: Democracy, protectionism, war, colonialism, communism

JEL Classification: P43, N10, O10

Suggested Citation

Milanovic, Branko, The Modern World: The Effect of Democracy, Colonialism and War on Economic Growth 1820-2000 (August 2005). Available at SSRN: https://ssrn.com/abstract=812144 or http://dx.doi.org/10.2139/ssrn.812144

Branko Milanovic (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

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HOME PAGE: http://econ.worldbank.org/staff/bmilanovic

University of Maryland ( email )

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