Proceedings of The 2nd International Conference on Future of Business, Management, and Economics
External Shocks, Democratic Institutions, and Economic Resilience
Salah Ahmad and Mohamed Ali Trabelsi
This article focuses on the analysis of the role of democracy in strengthening the resilience of developing economies in the face of exogenous external shocks. Our work consists in estimating the probable duration of exit from a growth spell of economic growth for the main factors, especially external shocks and democracy by the duration model. Based on a panel of 96 developing countries during the period 1965-2015, our estimates show that democracy is a factor of resilience, insofar as it intervenes to support growth spells in the event of negative external shocks.
Keywords: Resilience; Economic growth; developing countries; Democracy; Survival models.