Democracy and Economic Openness in an Interconnected System: by Quan Li

By Quan Li

During this e-book, Quan Li and Rafael Reuveny mix the social medical procedure with a vast, interdisciplinary scope to deal with probably the most fascinating and significant political, financial, and environmental problems with our instances. Their ebook employs formal and statistical ways to examine the interactions of financial globalization, democratic governance, source of revenue inequality, monetary improvement, army violence, and environmental degradation. In doing so, Li and Reuveny move a number of disciplinary obstacles, have interaction a variety of educational debates, convey the insights from compartmentalized our bodies of literature into direct discussion, and discover coverage tradeoffs in a growingly interconnected political-economic-environmental method. They express that starting to be interconnectedness within the international procedure raises the calls for on nationwide leaders and their advisors; academicians and coverage makers might want to go disciplinary obstacles in the event that they search to raised comprehend and deal with the coverage tradeoffs of much more advanced tactics than those investigated right here.

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Hence, the threats to democracy from financial inflows and FDI are substantial. If the current trend in the effect of globalization on democracy continues, our finding that the increasing number of democracies in a region is associated with greater democracy may reveal a “diabolic” flip side. That is, as trade, FDI, and financial flows become increasingly associated with democratic decline, the number of democracies in a region may also decline, which in turn may contribute to a decrease in the number of democracies.

Democracy and Economic Openness 35 them based on pure theoretical considerations. In other words, because these arguments reach conflicting conclusions, they need to be evaluated empirically, to which we turn next. EMPIRICAL MODEL AND ANALYSIS This section first presents our statistical model for the empirical analysis and then discusses several research design issues. Next, the section presents the key results of the empirical analysis. The discussion in this section is self-contained and does not require any specific statistical expertise.

Because the efficient operation of the market requires an enforceable system of property rights and impartial courts, economic openness compels the popularization of norms respecting the rule of law and civil and human rights. 9 According to a seventh view, economic globalization intensifies the diffusion of democratic ideas across borders. Transnational movements of commodities, services, and factors of production facilitate and encourage the exchange of norms and ideas, increasing the diversity of political views in a country and indirectly promoting political competition.

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