http://links.jstor.org/sici?sici=0003-0554(199412)88%3A4%3C903%3ACDTEDT%3E2.0.CO%3B2-3
Abstract
In comparative politics, an established finding--that economic
development fosters democratic performance--has recently come under
challenge. We counter this challenge with a dynamic pooled time series
analysis of a major, but neglected data set from 131 nations. The
final generalized least squares-autoregressive moving averages
estimates (N = 2,096) appear robust and indicate strong economic
development effects, dependent in part on the nation's position in the
world system. For the first time, rather hard evidence is offered on
the causal relation****p between economics and democracy. According to
Granger tests, economic development "causes" democracy, but democracy
does not "cause" economic development. Overall, the various tests
would seem to advance sharply the modeling of democratic performance.
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so democracy may not always be the best solution if the goal is
economic development?
