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Does membership in international organizations increase governments' credibility? Testing the effects of delegating powers

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  • Dreher, Axel
  • Voigt, Stefan

Abstract

This paper analyzes whether nation-state governments can increase their credibility by becoming members of international organizations. It is hypothesized that the degree of delegation to international organizations can improve the credibility of nation-state governments. This hypothesis is tested by introducing three new indicators for international delegation. On the basis of panel data for up to 136 countries and the time period from 1984 to 2004, membership in international organizations is significantly and robustly linked with better credibility, here proxied for by country risk ratings.

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  • Dreher, Axel & Voigt, Stefan, 2011. "Does membership in international organizations increase governments' credibility? Testing the effects of delegating powers," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 326-348, September.
    • Handle: RePEc:eee:jcecon:v:39:y:2011:i:3:p:326-348
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    More about this item

    Keywords

    Delegation of competence Credibility Dilemma of the strong state International organizations;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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