Final answer:
Modernization theory has not clearly established a causal link between economic growth and democratic institutions.
Step-by-step explanation:
False. Modernization theory has not clearly established a causal link between economic growth and democratic institutions. While some scholars argue that economic development can lead to the emergence or survival of democracy, there is no scholarly consensus on this matter. For example, New York University professor Adam Przeworski and Fundação Getúlio Vargas professor Fernando Limongi found that transitions to democracy can occur independently of economic development, but once a transition happens, countries with higher levels of economic development tend to remain democratic. Therefore, the relationship between economic growth and democratic institutions is complex and multifaceted.