Economic effects of democracy
Argument that democracy is bad for growth
More details on “democracy bad for growth” argument
Some blame India’s democracy for economic problems (Economist (2012): The democracy bottleneck)
Arguments that democracy is good for growth
Ingredients of Growth
Do dictatorships invest more?
Do dictatorships have faster labor force growth?
Do democracies have better resource efficiency (technology, etc.)?
Do dictatorships grow faster or slower than democracies?
Democracies grow neither faster nor slower than dictatorships (controlling for other factors)
Do dictatorships grow faster or slower than democracies in poor countries?
Do dictatorships grow faster or slower than democracies in wealthy countries?
Democracies promote growth through greater investment in female health and education
Whereas Communist dictatorships have high female labor force participation, oil rich dictatorships do not
What about the Tigers?

Some blame India’s democracy for economic problems (Economist (2012): The democracy bottleneck)

Indian coalition government unable to push through reforms
Government spending on subsidies for fuel & electricity (and debt) instead of investment and social programs (education, etc.)
Government spending also on unprofitable SOEs to protect public sector jobs