Abstract:
Do new communication technologies promote democratic values in autocratic regimes? We use a unique setting to answer this question: the distribution of photocopy machines, the Xerox program between 1985 and 1989, in communist Hungary. We show that areas equipped with machines are more likely to support democratic values in the referendum of 1989. These areas, and nearby cities, are also more likely to participate in elections and undertake entrepreneurial activities in the short and long run. Our results suggest that new communication technologies can help promote democratic values even in countries where political competition is limited and traditional media is censored.