Document Type

Master's Culminating Experience

Publication Date



Per capita wealth is far from evenly distributed in all countries of this world. For example, in 1992, real GDP per capita in Japan was about $15,105 (constant dollar using chain index). The corresponding measure for India was $1,282, or about 8.5% that of Japan. While the disparities are large in an absolute sense, they are small in comparison to the richest and poorest countries in the world. Are the rich countries and poor countries developing at the same rate? Have the poor countries shown any signs of catching up? What factors are correlated with the economic prosperity?

This paper focuses on democracy, which is one of the factors that are allegedly correlated with economic prosperity. Attempts are made to use regression analysis to test the democracy relationship and explore its nature. As a conclusion, it is found that democracy has some influence on per capita income, but on the other hand, economic development does not seem to foster democracy.