The Impact of Political Regime Type on Economic Growth Evidence from East Asia
59 leaves: tables
Existing studies establish mixed results on the effect of political regime types on economic growth. Using fixed effect regression analysis, this study shows that democracy has a weakly negative effect on GDP per capita growth of the eight Asian countries including Thailand, Singapore, Indonesia, Malaysia, Philippines, South Korea, Japan and China during 1974 – 2015.
This is because their democratic regime is weak and prevails high level of corruption. In what follows, this study finds that democracy’s effect on economic growth is inferior to dictatorship in higher financially open and highly educated economy whereas its benefit is the ability to maintain a good perception to foreign investors relatively to dictatorship in the presence of political instability, and tends to outperform dictatorship under such circumstance.