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Globalization and political trust

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  • Fischer, Justina AV

Abstract

This paper postulates that a country’s integration into the world economy may lower citizens’ political trust. I argue that economic globalization constrains government’s choice set of feasible policies, impeding responsiveness to the median voter. Matching individual-level survey data from 1981 to 2007, repeated cross-sections of altogether 260’000 persons from 80 countries, with a measure of a country’s degree of economic globalization for the same time period, I find that there is a trust-lowering impact of globalization; its magnitude, however, depends on whether or not the individual is informed about politics and the economy. Trust-lowering effects of globalization are larger for those who have no interest in politics, are unwilling to indicate their political leaning, or who have low educational levels. Two-stage least squares regressions and a set of country and time fixed effects support a causal interpretation. Obviously, viewing the domestic government as accountable for its policies plays a decisive role for the relation between economic globalization and political trust. Robustness against country’s degree of economic development, past globalization and different time periods is tested.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37763.

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Date of creation: 30 Mar 2012
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Handle: RePEc:pra:mprapa:37763

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Keywords: Political trust; globalization; international trade; openness; FDI; World Values Survey;

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Cited by:
  1. Fischer, Justina A.V., 2013. "The Cyprus crisis in the mirror: the ‘small deposit tax’ as historical faux-pas," MPRA Paper 45652, University Library of Munich, Germany.
  2. Fischer, Justina A.V., 2012. "The choice of domestic policies in a globalized economy: Extended Version," MPRA Paper 37816, University Library of Munich, Germany.

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