Final answer:
Modernization Theory proposes a link between economic growth and democratization, but there is no scholarly consensus. While some researchers find correlation and support for the theory, others point out the complexity of the relationship and the variability in governmental regimes.
Step-by-step explanation:
Modernization Theory and Regime Type
The question regarding the relationship between economic growth and democratic institutions refers to the Modernization Theory, which suggests that higher levels of economic development lead to democracy. This theory, however, does not enjoy a unanimous scholarly consensus. Rather, the empirical evidence is mixed. Scholars such as Adam Przeworski and Fernando Limongi argue that economic development greatly impacts society and maintains that once a country becomes democratic, higher levels of economic development help in sustaining a democracy. On the other hand, scholars like Barbara Geddes and James A. Robinson find that there is a correlation between economic development and democratization, although the mechanisms remain unclear. In contrast, the Freedom House data indicates variability in freedom levels across different regime types, where parliamentary systems are mostly free, while presidential systems are less often free.
It's important to note that the type of government or regime can vary greatly in practice, even within categories that appear clear-cut. Democracies can differ in terms of how distributed or concentrated power is, impacting their level of democratic characteristics.