Globalization, Democracy and Development

26 Pages Posted: 25 Oct 2013

See all articles by Jorge Braga de Macedo

Jorge Braga de Macedo

New University of Lisbon - Faculdade de Economia; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Luis Brites Pereira

Nova School of Business and Economics

Joaquim Oliveira Martins

OECD; University Paris-Dauphine - PSL

João Tovar Jalles

International Monetary Fund (IMF); Technical University of Lisbon (UTL) - Research Unit on Complexity and Economics (UECE)

Date Written: October 2013

Abstract

This paper addresses the interactions between globalization, the quality of democracy, and economic convergence using simultaneous estimation techniques. To reflect process, we use multi-dimensional, de facto, and continuous measures of democracy and globalization. To reflect context, as defined by space (geography) and time (history), we control for the distance to the income frontier. Using this measure of development, we extend the test for the two-way relationship between democracy and globalization put forward by Eichengreen and Leblang (2008) for the period 1870-2000. Focusing on the more recent wave of globalization (1970-2005), we find a two-way relationship between democracy and globalization and also significant two-way relationships with development. In the restricted sample of non-OECD countries, however, democracy hurts development.

Suggested Citation

Braga de Macedo, Jorge and Pereira, Luis Brites and Oliveira Martins, Joaquim and Jalles, João Tovar, Globalization, Democracy and Development (October 2013). NBER Working Paper No. w19575, Available at SSRN: https://ssrn.com/abstract=2345069

Jorge Braga de Macedo (Contact Author)

New University of Lisbon - Faculdade de Economia ( email )

Campus de Campolide
Lisboa, 1099-032
Portugal

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Luis Brites Pereira

Nova School of Business and Economics ( email )

Faculdade de Economia, UNL
Campus de Carcavelos, Rua da Holanda, 1
Carcavelos, Cascais, 2775-405
Portugal
(+351) 213 801 600 (Phone)
(+351) 213 871 105 (Fax)

HOME PAGE: http://https://www2.novasbe.unl.pt/en/

Joaquim Oliveira Martins

OECD ( email )

2 Rue André Pascal
75775 Paris Cedex 16
France
+33 1 45 24 88 53 (Phone)

HOME PAGE: http://www.oecd.org/cfe

University Paris-Dauphine - PSL ( email )

PARIS
France

João Tovar Jalles

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Technical University of Lisbon (UTL) - Research Unit on Complexity and Economics (UECE)

Rua Miguel Lupi, 20
Lisboa, 1200-781
Portugal

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