The relationship between change in form of government and economic growth after the end of the Cold War: a panel data regression analysis

Abstract

This study aims to examine the relationship between the form of government and economic growth in the post-Cold War period. This is done with a panel data analysis, containing cross-sectional units of 145 countries with a time period ranging from 1995 to 2018. The regression model uses growth of gross domestic product per capita as the dependent variable, and Polity score change, total investments, economic freedom and change in mean years of schooling as the independent variables. The study found a statistically significant relationship between change in form of government and economic growth, but this relationship becomes less clear when more independent variables are included. The results suggest that a relationship between form of government and economic growth may rather depend on the policies enacted, and these policies may not be exclusive to one form of government.