Sources and legitimacy of financial liberalization
This article seeks to clarify how we understand domestic and international sources of globalization and specifically how we explain financial liberalization across countries. The article also develops our understanding of the underlying legitimacy of financial liberalization. We debate e.g. Abiad and Mody (2005) and others who have found political factors to have little impact on financial openness. Using the same data undergirding such conclusions we argue, in contrast, that even a slight broadening of the political variables employed in the model and much closer attention to “input” and “output” aspects of the political legitimacy of financial liberalization over time reveal a more central role for politics in shaping liberalization. Input legitimacy involves the representation of stakeholders in initial and ongoing decisions to liberalize, while “output” legitimacy concerns liberalization's distributional consequences and management thereof over time. Several empirical measures of domestic-national and international political factors plausibly influence such aspects of legitimacy and are found to play a significant role in shaping liberalization, suggesting legitimation politics to be more important to financial openness than existing studies have typically acknowledged.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 28 (2012)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/inca/505544|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dani Rodrik, 1997. "Has Globalization Gone Too Far?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 57, 03.
- Bretschger, Lucas & Hettich, Frank, 2002.
"Globalisation, capital mobility and tax competition: theory and evidence for OECD countries,"
European Journal of Political Economy,
Elsevier, vol. 18(4), pages 695-716, November.
- Bretschger, Lucas & Hettich, Frank, 2000. "Globalisation, capital mobility and tax competition: Theory and evidence for OECD countries," Wirtschaftswissenschaftliche Diskussionspapiere 07/2000, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
- Hays, Jude C. & Ehrlich, Sean D. & Peinhardt, Clint, 2005. "Government Spending and Public Support for Trade in the OECD: An Empirical Test of the Embedded Liberalism Thesis," International Organization, Cambridge University Press, vol. 59(02), pages 473-494, April.
- Lai, Yu-Bong, 2010. "The political economy of capital market integration and tax competition," European Journal of Political Economy, Elsevier, vol. 26(4), pages 475-487, December.
- Anna Maria Mayda & Kevin H. O'Rourke, 2007.
"Risk, Government andd Globalization: International Survey Evidence,"
The Institute for International Integration Studies Discussion Paper Series
- Mayda, Anna Maria & O'Rourke, Kevin Hjortshøj & Sinnott, Richard, 2007. "Risk, Government and Globalization: International Survey Evidence," CEPR Discussion Papers 6354, C.E.P.R. Discussion Papers.
- Anna Maria Mayda & Kevin H. O'Rourke & Richard Sinnott, 2007. "Risk, Government and Globalization: International Survey Evidence," NBER Working Papers 13037, National Bureau of Economic Research, Inc.
- Anna Maria Mayda & Kevin H. O'Rourke & Richard Sinnott, 2007. "Risk, Government and Globalization: International Survey Evidence," Trinity Economics Papers tep0507, Trinity College Dublin, Department of Economics.
- Burgoon, Brian, 2001. "Globalization and Welfare Compensation: Disentangling the Ties that Bind," International Organization, Cambridge University Press, vol. 55(03), pages 509-551, June.
- Philip Arestis & Panicos Demetriades, 1999. "Financial Liberalization: The Experience of Developing Countries," Eastern Economic Journal, Eastern Economic Association, vol. 25(4), pages 441-457, Fall.
- Haggard, Stephan & Webb, Steven B, 1993. "What Do We Know about the Political Economy of Economic Policy Reform?," World Bank Research Observer, World Bank Group, vol. 8(2), pages 143-168, July.
- Yongfu Huang, 2009. "The political economy of financial reform: are Abiad and Mody right?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1207-1213.
- Held, David, 1997. "Democracy and globalization," MPIfG Working Paper 97/5, Max Planck Institute for the Study of Societies.
- Abdul Abiad & Enrica Detragiache & Thierry Tressel, 2010.
"A New Database of Financial Reforms,"
IMF Staff Papers,
Palgrave Macmillan, vol. 57(2), pages 281-302, June.
- Robert J. Franzese Jr. & Jude C. Hays, 2006. "Strategic Interaction among EU Governments in Active Labor Market Policy-making," European Union Politics, , vol. 7(2), pages 167-189, June.
- Abdul Abiad & Ashoka Mody, 2005.
"Financial Reform: What Shakes It? What Shapes It?,"
American Economic Review,
American Economic Association, vol. 95(1), pages 66-88, March.
- Bergh, Andreas & Nilsson, Therese, 2010. "Do liberalization and globalization increase income inequality?," European Journal of Political Economy, Elsevier, vol. 26(4), pages 488-505, December.
When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:28:y:2012:i:2:p:147-161. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.