Democratic Vs. Non-Democratic Countries – Why Does Economic Growth Differ?

Democratic countries have higher economic growth than non-democratic countries. The following chart shows the difference in GDP growth per capita between Singapore and Jordan:


Source: Democracy, diversification, and growth reversals by David Cuberes , Michal Jerzmanowski

The above chart shows the exponential growth enjoyed by the citizens of Singapore over the past few decades compared to Jordan which has stagnant growth. This is because Singapore is  a democracy while Jordan is not. Jordan is a a constitutional monarchy with a representative government. executive authority lies with the King King Abdullah II and his council of ministers.

Some of the reasons for the difference in economic growth between Jordan and Singapore are:

  • Openness to trade
  • Protection of property rights
  • High investment rates,  etc.

Singapore has the above factors in abundance while Jordan lacks.

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