The Economic Origins of Democracy Reconsidered.

American Political Science Review 106(February):58-80, February 2012. doi.org/10.1017/S0003055411000505

Georgetown McDonough School of Business Research Paper

Posted: 11 Oct 2018

See all articles by John R. Freeman

John R. Freeman

University of Minnesota - Minneapolis

Dennis P. Quinn

Georgetown University - Department of Strategy/Economics/Ethics/Public Policy

Date Written: 2012

Abstract

The effects of inequality and financial globalization on democratization are central issues in political science. The relationships among economic inequality, capital mobility, and democracy differ in the late twentieth century for financially integrated autocracies vs. closed autocracies. Financial integration enables native elites to create diversified international asset portfolios. Asset diversification decreases both elite stakes in and collective action capacity for opposing democracy. Financial integration also changes the character of capital assets — including land — by altering the uses of capital assets and the nationality of owners. It follows that financially integrated autocracies, especially those with high levels of inequality, are more likely to democratize than unequal financially closed autocracies. We test our argument for a panel of countries in the post–World War II period. We find a quadratic hump relationship between inequality and democracy for financially closed autocracies, but an upward sloping relationship between inequality and democratization for financially integrated autocracies.

Keywords: financial globalization, democratization

Suggested Citation

Freeman, John R. and Quinn, Dennis P., The Economic Origins of Democracy Reconsidered. (2012). American Political Science Review 106(February):58-80, February 2012. doi.org/10.1017/S0003055411000505; Georgetown McDonough School of Business Research Paper. Available at SSRN: https://ssrn.com/abstract=3252792

John R. Freeman

University of Minnesota - Minneapolis ( email )

110 Wulling Hall, 86 Pleasant St, S.E.
308 Harvard Street SE
Minneapolis, MN 55455
United States

Dennis P. Quinn (Contact Author)

Georgetown University - Department of Strategy/Economics/Ethics/Public Policy ( email )

Washington, DC 20057
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
117
PlumX Metrics