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Firmly
identified with modernization hypothesis, economic elements have been thought
to affect the probability of democratization in three specific ways. It is
useful to look more carefully at each of them in separation and analyze .The
primary economic variable that researchers have thought  for democratization is wealth. This is
ordinarily thought to be estimated by GDP per capita to represent wealth over
countries. Lipset was among the principal researchers to clarify the show
predominance of wealthier nations among democratic countries. In later years,
the theory that prompt democracy would experience some measure of update as
researchers tried the linkages set forward by Lipset and the modernization
scholars.

As
Przeworski and Limongi, Alvarez, Cheibub, have outlined, that it should separate
exchange of wealth and its effect into various fleeting associations with the
probability of democratization.1

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 For instance, they contend that we should
think about the relationship as being either endogenous or exogenious  when we think about  elements by which wealth is identified with
prospects for democratization. Their contention is that there is little help
for the hypothesis that higher measures of endogenous wealth prompt more
noteworthy probability of progress. However there seems bolstering for an
exogenous relation than democratic nations that are wealthier tend to remain
equitable to a more prominent degree than do those nations that are less well
off. 2

The
second economic   precondition  refers to  the probability of democratization and
prospects of private enterprise and free market economies. Researchers, for
example, Dahl  and Almond have contended
that supporting highlights of  democratization incorporated with the act of
private enterprise and free and open markets serve to strengthen democracy.
Almond, in his original piece on private enterprise and democracy, surveyed the
different contentions that have looked to interface the act of free enterprise
with help for democratization .3

Dahl has contended
that the linkage is clear and that unequivocal examples of help result from financial
advancement for process of democratization. Likewise, private enterprise
additionally considers the formation of other autonomous elements thought to help
the move in the direction of democracy. It is thought to bring about numerous
cases in an extension of the white-collar

1
Adam Przeworski, Michael E. Alvarez, José Antonio Cheibub, and Fernando
Limongi, Democracy and Development: Political Institutions and Well-Being in
the World, 1950-1990 ,Cambridge University Press, 2000,. https://www3.nd.edu/~mcoppedg/QPA/PrzEtAl.pdf
accessed 19.01.2018

2
Ibid.

3 Almond,
G. A. ,Capitalism and democracy,1991, 
PS: Political Science and Politics, 24, 467-474.

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