Does democracy cause higher economic growth? We build a model taking culture and interpersonal cooperation into account and find that democracy increases economic productivity through giving people more equal rights, which allows people to build a larger interpersonal network so that they can reduce investment risk and employ high-productivity (high-risk) methods in production.
Yang, M., & Zhang, L. (2013). Democracy and economic growth: A perspective of cooperation. Lingnan Journal of Banking, Finance and Economics, 4. Retrieved from http://commons.ln.edu.hk/ljbfe/vol4/iss1/3