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Openness and Democracy: Some Evidence from Pakistan

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  • Eatzaz Ahmad
  • Muhammad Zakaria
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    Abstract

    The paper empirically examines the relationship between trade openness and the level of democracy in Pakistan using annual time-series data for the period 1947-2009. The analysis shows that trade openness positively affects democracy in Pakistan. The results are robust to controlling for other democracy determining variables and various model specifications. The results also show that the effect of trade openness on democracy increases with the increase of the economic development. Other control variables, i.e. political constraints, human capital, government expenditures, physical capital, inflation and urbanization significantly affect democracy in the theoretically expected directions.

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    Bibliographic Info

    Article provided by Bulgarian Academy of Sciences - Economic Research Institute in its journal Economic Studies.

    Volume (Year): (2011)
    Issue (Month): 1 ()
    Pages: 175-185

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    Handle: RePEc:bas:econst:y:2011:i:1:p:175-185

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    1. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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    7. Cammack, Paul, 1998. "Globalization and the death of liberal democracy," European Review, Cambridge University Press, vol. 6(02), pages 249-263, May.
    8. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-55, December.
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