Modernization Theory. The modernization theory proposes that higher income causes a modernization process, e.g., better education, eventually causing democratization. In our lecture, we saw Figures 1 and 2. PRT SVC DOM LTU CRI GROW NOR 10 IND JAM MKDALVA VA SV BWA TO- ISR MUN PRA USA MDA IKA FIST DRY BEL PHL HND PER PAN BRA VEN ZAF CARG 5 GE HUN CHL THA POL KOR MDG GMB BEN MNG SCG ARM NIC GIM OGR PAN MYS GNB MWI MU SEN MEX OKCHM BIGD 250 PAK GUY RUS ZMB CHA HRV Polity IV index, 1980-2010 average LBR ETH MOZ NGA KGZ CAR BOP SU CAF KEN YEM IRN OSGP SOM 12 ICD UGA GIN WE DZACBLR BFA COG AGO -5 SON GAB DIRT CAR CAZE EGY TUN KWT ER ONM CHN MAR CUB OBY ARE OPRK OKM CHR SWZ COMN -10 SAUD 10 12 Log GDP per worker in 2000 Countries with a higher income per capita tend to have a higher democracy score, but that is not the case for all countries, especially for the oil-exporting countries of the Persian Gulf. Source: Polity IV data (http://www.systemicpeace.org/inscr/inscr.htm) and Penn World Tables (http://pwt.econ.upenn.edu/). Figure 1 1. (4) Are Figures 1 and 2 consistent with the modernization theory, and why? 2. (4) An alternative explanation for the two correlations is that cultural or geographical differences might cause some countries to have higher income, more education, and a more democratic institution and make others have lower income, less education, and a less democratic institution. Given this consideration, in our lecture, what empirical exercise have we done to further test the modernization theory?JAM BWA AUT COLIND YPL -NGL MUS CIR DJR DNK AUS CAN NOR 10 PR ITAO ESP GRO TUR TO ISR SLV CBOL ECU CRA URY ZAF CHE BEL SWE NEL USA FIN SEN HND PEN CARG -LKA PER 5 PUL CH CHUN BPN GER NPL BEN ING GGTM NIC. BRA THA MYS DOM WN POP KOR MUD BGD PRY MEX FJ Polity IV index, 1980-2010 average PAK 150 CGUY PAN 0 GMB.. NER LBR MOZ OGHA -MWI ON SLE- CAF CAR REN IRN ZWE SON UGA GO -DZA -5 TUN -COG FOR Ard RWA CMR EGY CHND CKWT SYR swa BHR -10 0 5 10 15 Total years of schooling: Barro-Lee data: 1999 A higher level of education is correlated with a higher democracy score. Source: For the Polity IV data, see http://www.systemicpeace.org/inscr/inscr.htm; for education data, see the Barro-Lee data set, http://www.barrolee.com. Figure 23. (2) What was the result of our empirical exercises? Did it support the modernization theory