Culture, Institutions and Democratization*

CULTURE, INSTITUTIONS AND DEMOCRATIZATION* Yuriy Gorodnichenko Gerard Roland University of California, Berkeley and NBER University of California, Berkeley, CEPR and NBER First draft: November 2012 This draft: April 2015 Abstract: We construct a model of revolution and transition to democracy under an individualistic and a collectivist culture. The main result is that, despite facing potentially larger collective action problems, countries with an individualistic culture are more likely to end up adopting democracy faster than countries with a collectivist culture. Our instrumental variable estimation suggests a strong and robust effect of individualistic culture on average polity scores and length of democracy, even after controlling for other determinants of democracy emphasized in the literature. We provide evidence that countries with collectivist culture are also more likely to experience autocratic breakdowns and transitions from autocracy to autocracy.