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We reexamine the effect of economic development on the level of democracy based on the data sets of Acemoglu et al. (Am Econ Rev 98(3):808–842, 2008) with a novel regression specification utilizing a zero–one-inflated beta distribution for the response variable democracy. Contrary to the results of Acemoglu et al. (2008), some support for a positive association between income and democracy is found...
Backed by strong empirical results, obtained from several different specification and sensitivity analyses, this paper contends that countries with high-intellectual quotient populations produce and export more sophisticated/complex products. This result is further reinforced by the quality of democracy.
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