Democracy is widely believed to contribute to economic growth and public health. However, we ﬁnd that this conventional wisdom is no longer true and even reversed; democracy has persistent negative impacts on GDP growth since the beginning of this century. This ﬁnding emerges from ﬁve diﬀerent instrumental variable strategies. Our analysis suggests that democracies cause slower growth through less investment, less trade, and slower value-added growth in manufacturing and services. For 2020, democracy is also found to cause more deaths from Covid-19.
Keywords: Democracy, Economic Growth, Public Health, Causality