Reconsidering Regime Type and Growth : Lies, Dictatorships, and Statistics - Magee - 2014 - International Studies Quarterly

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  • Reconsidering Regime Type and Growth: Lies, Dictatorships, and Statistics - Magee - 2014 - International Studies Quarterly - Wiley Online Library
    http://onlinelibrary.wiley.com/doi/10.1111/isqu.12143/abstract

    Some recent papers have concluded that authoritarian regimes have faster economic growth than democracies. These supposed growth benefits of autocracies are estimated using data sets in which growth rates rely heavily on data reported by each government. Governments have incentives to exaggerate their economic growth figures, however, and authoritarian regimes may have fewer limitations than democracies on their ability to do so. This paper argues that growth data submitted to international agencies are overstated by authoritarian regimes compared to democracies. If true, it calls into question the estimated relationship between government type and economic growth found in the literature. To measure the degree to which each government’s official growth statistics are overstated, the economic growth rates reported in the World Bank’s World Development Indicators are compared to a new measure of economic growth based on satellite imaging of nighttime lights. This comparison reveals whether or not dictators exaggerate their true growth rates and by how much. Annual GDP growth rates are estimated to be overstated by 0.5–1.5 percentage points in the statistics that dictatorships report to the World Bank.

    #mensonges #statistiques redressés par #satellite, via @francoisbriatte

    • Figure 1 largely duplicates a figure from Henderson et al. (2012) showing the relationship between the change in the log of nighttime lights between 1992–93 and 2005–06 and the change in log GDP over those years. In the figure, we identify the countries classified as autocracies with a large round dot. As the figure reveals, the autocracies tend to lie above the regression line, which means that their reported GDP growth over the 13-year time period is above the level predicted by the growth in their nighttime lights. The two countries with the largest deviation between their growth in nighttime lights and reported growth in GDP are China and Myanmar.