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Membership has its Privileges: On the Effects of Delegating Powers Internationally

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  • Voigt, Stefan

Abstract

This paper analyzes whether nation-state governments can increase their credibility by becoming members of international organizations. Credibility is an important asset because it determines the real interest rate and is expected to have an important impact on investment and growth. 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 a new indicator. On the basis of 136 countries, various versions of an indicator of international delegation are highly significant for explaining variation in countries' credibility. The effect of international delegation on credibility is particularly strong among the group of lower income countries (N=60).

Suggested Citation

  • Voigt, Stefan, 2005. "Membership has its Privileges: On the Effects of Delegating Powers Internationally," Volkswirtschaftliche Diskussionsbeiträge 73, University of Kassel, Faculty of Economics and Management.
    • Handle: RePEc:zbw:kasvdb:73
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    Cited by:

    1. Voigt, Stefan & Ebeling, Michael & Blume, Lorenz, 2007. "Improving credibility by delegating judicial competence--the case of the Judicial Committee of the Privy Council," Journal of Development Economics, Elsevier, vol. 82(2), pages 348-373, March.

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    More about this item

    Keywords

    Delegation of Competence; Credibility; Dilemma of the Strong State; International Organizations;
    All these keywords.

    JEL classification:

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

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