Democracy and Economic Welfare: An Empirical Analysis

Afrimadona Afrimadona; Shanti Darmastuti; Laode Muhamad Fathun

doi:10.31506/jog.v4i1.4020

Democracy and Economic Welfare: An Empirical Analysis

Afrimadona Afrimadona, Shanti Darmastuti, Laode Muhamad Fathun

Abstract

This article assesses the relationship between democracy and welfare policy. There are substantial variations in the empirical evidence regarding the relationship between these two variables. While some works showed that there is a systematic relationship between democracy and welfare policy, others failed to show that relationship. We argue that we need to look at the internal political variables within these democracies in order to see what factors within those polities that can lead to a more welfare-oriented policy. We further argue that democracies with parliamentary system and proportional representation are more likely to adopt welfare-oriented policy. Using panel data of 32 democracies from 1961 to 2015, we find some empirical supports for our argument.

Keywords

Democracy, Welfare, Parliamentarism, Proportional Representation

Full Text:

16-29 PDF

References

Barro, Robert J. (1996). Democracy And Growth. Journal of Economic Growth, 1:1-27 (March).

Barbieri, Katherine, Omar M.G. Keshk, and Brian M. Pollins. 2009. “Trading Data: Evaluating Our Assumptions and Coding Rules.” Conflict Management and Peace Science 26(5): 471–91.

Caoili, Rachel. (2005). Reflections on democracy and development in Southeast Asia: Why do the Philippines and Singapore differ?. Culture Mandala: The Bulletin of the Centre for East-West Cultural and Economic Studies, Vol. 6, Iss. 2, Article 1

Doucouliagos, Hristos& Mehmet Ali Ulubasoglu. (2008). Democracy and Economic Growth: A Meta-Analysis. American Journal of Political Science, Vol. 52, No. 1, January 2008, 61–83.

Durham, J. Benson. (1999). Economic Growth and Political Regimes. Journal of Economic Growth, 4: 81–111 (March).

Rodrik, Dani & Romain Wacziarg. (2005). Do Democratic Transitions Produce Bad Economic Outcomes?. The American Economic Review.Vol. 95, No. 2.

T. Rock, Michael. (2013). East Asia's Democratic Developmental States and Economic Growth. Journal of East Asian Studies 13, 1-34.

Feld, Lars P, Justina A.V. Fischer&Gebhard Kirchgassner. (2010). The Effect Of Direct Democracy On Income Redistribution: Evidence For Switzerland. Economic Inquiry, Vol. 48, No. 4, October, 817–840, doi:10.1111/j.1465-7295.2008.00174.x

Kang, WooJin. (2015). Inequality, the welfare system and satisfaction with democracy in South Korea. International Political Science Review, Vol. 36(5) 493–509. doi: 10.1177/0192512114521053

Shen,Yan&Yang Yao. (2008). Does grassroots democracy reduce income inequality in China?. Journal of Public Economics 92, 2182–2198, doi:10.1016/j.jpubeco.2008.04.002

Armingeon, Klaus, Virginia Wenger, Fiona Wiedemeier, Christian Isler, Laura Knöpfel, David Weisstanner and Sarah Engler. 2018. Comparative Political Data Set 1960-2016. Bern: Insti-tute of Political Science, University of Berne.

FaGregory, C. C. ( 2011). Memahami Dahyatnya Ekonomi China. Jakarta: PT.Tiga Serangkai Pustaka Mandiri.

Lake, e. A. ( 2000). International Political Economy: Perspective On Global Power and Wealth, Fourth Edition . New York: St. Martin’s Press.

List, F. (1966). The National System of Political Economy. New York: Kelley.

Meyer, Traute. (2016). Democracies, Economies and Social Protection: Understanding welfare state development in Asia and Europe. Friedrich-Ebert-Stiftung.

OECD. National Accounts Statistics. Paris: OECD, various years.

OECD. Social Expenditure Database (SOCX). Paris: OECD, various years.

ParlGov. (2016). Parliaments and Governments Database. http://www.parlgov.org/explore/

Persson, Torsten and Guido Tabellini. (2003). The Economic Effects of Constitutions. Cambridge, MA: MIT Press.

Rae, Douglas W. (1968). A note on the Fractionalization of Some European Party Systems. Comparative Political Studies 1: 413-418.

Riker, William H. (1994). “Duverger’s Law Revisited.” In Electoral Laws and their Consequences, eds. Bernard Grofman and Arend Lijphart. New York: Agathon Press

Siegle, Joseph. (2016). Democracy and Prosperity. https://africacenter.org/wp-content/uploads/2016/02/Democracy-and-Prosperity-Siegle.pdf

Siegle, Joseph.n.d. Why Democracy is Central to Prosperity and Peace. https://www.files.ethz.ch/isn/105515/Why_Democracy_is_Central.pdf

Yustika, A. E. (2009). Ekonomi Politik Kajian Teoretis dan Analisis Empiris. Yogyakarta: Pustaka Pelajar.

DOI: http://dx.doi.org/10.31506/jog.v4i1.4020