Democratization and Economic Globalization

Posted: 4 Jun 2010

See all articles by Helen V. Milner

Helen V. Milner

Princeton University - Princeton School of Public and International Affairs; Princeton University - Department of Political Science

Bumba Mukherjee

Pennsylvania State University

Multiple version iconThere are 2 versions of this paper

Date Written: June 2009

Abstract

We address two questions that are central to the literature on the emergence of democracy and economic globalization. First, does democratization foster higher levels of trade and capital account openness? Second, do trade and capital account openness increase the likelihood of democratization? We review the literature in international political economy and comparative politics that has theoretically and empirically addressed these questions. We then conduct some empirical tests in a sample of developing countries to briefly evaluate the empirical relationship between democracy and economic globalization. Our analysis reveals that evidence for the claim that democracy fosters trade and capital account liberalization is robust but that empirical support for the predicted positive effect of economic openness on democracy among developing countries is weak. More theoretical work is needed to clarify the link between democracy and economic liberalization, and to this end we provide possible topics for future research.

Suggested Citation

Milner, Helen V. and Mukherjee, Bumba, Democratization and Economic Globalization (June 2009). Available at SSRN: https://ssrn.com/abstract=1600570 or http://dx.doi.org/10.1146/annurev.polisci.12.110507.114722

Helen V. Milner (Contact Author)

Princeton University - Princeton School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544-1021
United States

Princeton University - Department of Political Science ( email )

Corwin Hall
Princeton, NJ 08544-1013
United States
609-258-0181 (Phone)

Bumba Mukherjee

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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