Democracy and Firm Productivity: Evidence from Indonesia

• 成果类型: Article
• 署名作者: Abeberese, Ama Baafra; Barnwal, Prabhat; Chaurey, Ritam; Mukherjee, Priya
• 署名单位: Wellesley College; Michigan State University; Johns Hopkins University; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01077
• 发表日期: 2023-05
• 页码: 713-722
• 关键词: health; inputs

摘要

While recent work suggests democracy does cause growth, the channels through which this effect occurs remain unclear. Exploiting quasi-random variation in the timing of district-level political regime changes induced by the collapse of President Suharto's government, we study the microlevel drivers of the democracy-growth relationship. Using Indonesian firm-level data, we find that democratization leads to an increase in firm productivity, a critical determinant of economic growth. Furthermore we find evidence of an improvement in the quality of local business regulations and the business environment for firms.