Dear candidate,

Democracy has no direct effect on economic growth but it has strong and significant indirect effects which contribute to growth. Democracy is associated with higher human capital accumulation, lower inflation, lower political stability, and higher economic growth.

Democracy sees higher GDP due to greater civil liberties, economic reform increased investment and government capacity and reduced social conflict. A belief that democracy is bad for economic growth is common in both academic political economy as well as popular press.

Hope this information is helpful.

hello Arsh,

democracy doesn't have a direct influence on economic growth.However there are many strong indirect ways in which democracy influence the growth of the economy. infact the higher human capital accumulation is the major reason for the association with the democracy. lower inflation, lower political instability and higher economic freedom are the other reasons for the democracy to cause the indirect relationships with the economic growth.

hope this information was useful for you....

wishing you all the best