Democracy and income: a comparison using a VAR models on a range of countries

• Autor(a) principal: Eusébio, Claúdia Pereira
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: por
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/23931
• topic: Democracia; Produto interno bruto real; Modelo vetor autorregressivo; Democracia -- Democracy; Real gross domestic product; VAR Model (Vector Auto Regressive Model)

One of the most notable empirical evidence in political economy is the relationship between per capita income and democracy. Therefore, the main objective of this dissertation is to understand the real influence and impact of democracy on the income level the population and how it will or will not influence the lifestyle of populations in different countries. The final sample corresponds to a total of 7 countries with different characteristics, either in terms of electoral regime or economic growth. Throughout the different existing studies, it was also found that some commonly known variables, such as savings rates, trade opening, among others, were influenced by the political region of each country. All analysis were performed based on econometric methods, including the multivariate autoregressive model, with the help of the STATA program. In addition to testing only the influence of the two main variables, this study also aims to show whether there is an impact of variables that refer to the sociocultural characteristics of the countries. One of the important results of this analysis is that the influence is unidirectional, that is, the real GDP variable, in no country, influences democracy, although some articles in the literature show this impact. On the other hand, countries like Portugal and Tunisia have more variables that the democratic level becomes implicative, whether in terms of the population's education level or interactions with international trade.