The paper examines the real per-capita growth effects of the quality of democracy, the rule of law, and capital flows in developing countries. The direct growth effects of democracy are positive and often statistically significant. Moreover, the estimates from a three-stage least-squares...

This paper finds convergence of real per capita GDP in Mexico`s states and regions during the period of higher average national per capita growth (1970-85), and divergence during the lower-growth period (1985-93). These results hold across states and regions and within regions. The poorest...