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Globalization, Democracy and Development

Author

Listed:
  • Jorge Braga de Macedo
  • Luis Brites Pereira
  • Joaquim Oliveira Martins
  • João Tovar Jalles

Abstract

This paper addresses the interactions between globalization, the quality of democracy, and economic convergence using simultaneous estimation techniques. To reflect process, we use multi-dimensional, de facto, and continuous measures of democracy and globalization. To reflect context, as defined by space (geography) and time (history), we control for the distance to the income frontier. Using this measure of development, we extend the test for the two-way relationship between democracy and globalization put forward by Eichengreen and Leblang (2008) for the period 1870-2000. Focusing on the more recent wave of globalization (1970-2005), we find a two-way relationship between democracy and globalization and also significant two-way relationships with development. In the restricted sample of non-OECD countries, however, democracy hurts development.

Suggested Citation

  • Jorge Braga de Macedo & Luis Brites Pereira & Joaquim Oliveira Martins & João Tovar Jalles, 2013. "Globalization, Democracy and Development," NBER Working Papers 19575, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19575
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    References listed on IDEAS

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    1. Federico Bonaglia & Jorge Braga de Macedo & Maurizio Bussolo, 2009. "How Globalisation Improves Governance," Chapters, in: Linda Yueh (ed.), The Law and Economics of Globalisation, chapter 7, Edward Elgar Publishing.
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    8. Claude Diebolt & Tapas Mishra & Bazoumana Ouattara & Mamata Parhi, 2013. "Democracy and Economic Growth in an Interdependent World," Review of International Economics, Wiley Blackwell, vol. 21(4), pages 733-749, September.
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    Cited by:

    1. Jorge Braga Macedo & Joaquim Oliveira Martins & João Tovar Jalles, 2021. "Globalization, Freedoms and Economic convergence: an empirical exploration of a trivariate relationship using a large panel," International Economics and Economic Policy, Springer, vol. 18(3), pages 605-629, July.
    2. Baris Kablamaci, 2019. "Does economic openness affect liberal and electoral democracy in a different way? Empirical evidence from developing countries," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(3), pages 404-433, July.

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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

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