Aufsatz(elektronisch)2009

Democratization and Economic Globalization

In: Annual review of political science, Band 12, S. 163-181

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Abstract

We address two questions that are central to the literature on the emergence of democracy & economic globalization. First, does democratization foster higher levels of trade & capital account openness? Second, do trade & capital account openness increase the likelihood of democratization? We review the literature in international political economy & comparative politics that has theoretically & empirically addressed these questions. We then conduct some empirical tests in a sample of developing countries to briefly evaluate the empirical relationship between democracy & economic globalization. Our analysis reveals that evidence for the claim that democracy fosters trade & capital account liberalization is robust but that empirical support for the predicted positive effect of economic openness on democracy among developing countries is weak. More theoretical work is needed to clarify the link between democracy & economic liberalization, & to this end we provide possible topics for future research. Adapted from the source document.

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