Income and Democracy : Lipset's Law Revisited /

We revisit Lipset's law, which posits a positive and significant relationship between income and democracy. Using dynamic and heterogeneous panel data estimation techniques, we find a significant and negative relationship between income and democracy: higher/lower incomes per capita hinder/trig...

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Bibliographic Details
Main Author: Hoeffler, Anke
Other Authors: Bates, Robert H., Fayad, Ghada
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2012.
Series:IMF Working Papers; Working Paper ; No. 2012/295
Subjects:
Online Access:Full text available on IMF
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520 3 |a We revisit Lipset's law, which posits a positive and significant relationship between income and democracy. Using dynamic and heterogeneous panel data estimation techniques, we find a significant and negative relationship between income and democracy: higher/lower incomes per capita hinder/trigger democratization. Decomposing overall income per capita into its resource and non-resource components, we find that the coefficient on the latter is positive and significant while that on the former is significant but negative, indicating that the role of resource income is central to the result. 
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