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The Relation between Democracy and Economic Development: An Econometric Analysis on the Emerging Economics
In the historical process, the relationship between democracy and economic development has been of interest to both political scientists and economists. Although most of the studies were conducted in the direction of democracy providing economic development, the consensus is that economic development provides democracy. In this sense, it can be said that economic development has a positive effect on democracy by supporting Lipset, which supports reconciliation and expresses the relationship between democracy and development as “the richer a country is, the more democratic it is”. The aim of this study, which is based on Lipset's hypothesis that supports reconciliation, is to investigate the impact of economic development on democracy. In the study, dynamic panel data analysis was made with data from the 2001-2016 period for 24 emerging market economies. In the analysis, it is concluded that economic development has a positive but weak effect on democracy and this effect will only occur in the long term.

Democracy, economic development, econometry, dynamic panel data analysis.

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