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Democracy and Globalization

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  • Barry Eichengreen

Abstract

The connections between globalization and democracy are a classic question in international political economy and a topic much debated in foreign policy circles. While the analytical literature is extensive, few previous studies have acknowledged the possibility of bidirectional causality or developed an instrumental variables strategy suitable for addressing it. We do so in this paper and apply our approach to an extensive historical data set. The results suggest the existence of positive relationships running both ways between globalization and democracy, though exceptions obtain at particular times (during the Bretton Woods era) and places (in labor scarce economies).

Suggested Citation

  • Barry Eichengreen, 2006. "Democracy and Globalization," NBER Working Papers 12450, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:12450 Note: DAE IFM
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    JEL classification:

    • F0 - International Economics - - General
    • F00 - International Economics - - General - - - General

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