Democracy, Diversification and Growth Reversals
发现非民主国家的中期增长趋势逆转更频繁、更剧烈，并构建模型说明这是因为非民主国家新企业进入壁垒高、产业多样化不足，实证也支持民主与产业多样化正相关。
There is much evidence that less democratic countries experience more high-frequency growth volatility. In this article we report a similar finding about volatility in the medium term: we find evidence that reversals of trend-growth are sharper and more frequent in non-democracies. Motivated by this evidence, we construct a model in which non-democracies have high barriers to entry for new firms. This leads to less sectoral diversification and so, in an uncertain environment, to larger growth swings in less democratic countries. We present empirical evidence that confirms the positive relation between democracy and industrial diversification. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.