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 regression offer evidence that democracy has indirect growth effects …

--replaced authoritarian governments with political democracy. Leaders of new democracies everywhere faced weak institutions, the challenge of … enhanced, while that of government technocrats decreases; the implications of this trend for democracy depend greatly on prior …