Theory: Cultural variables are incorporated into a baseline endogenous economic growth model. Hypotheses: attitudes toward achievement and thrift have positive effect on growth. concerning postmaterialism negative Methods: Ordinary least squares regression is used to test cultural models of cross section 25 countries. The encompassing principle resolve competing theoretical specifications generate final parsimonious A variant Leamer's Extreme Bounds Analysis (EBA) evaluate the sensitivity...

The relationship between democracy and globalization has been a subject of both scholarly policy debate. Some argue that the two go hand in – unrestricted international transactions encourage political accountability transparency politically free societies are least likely to restrict mobility goods services. But others democracies, which special interests suffer from foreign competition have voice, more closed markets, vice versa. Our analysis differs its predecessors three ways. We seek...

What explains cross-national patterns of international portfolio and foreign direct investment (FDI)? While existing explanations focus on the credibility a policy maker's commitment, we emphasize role diaspora networks. We hypothesize that networks—connections between migrants residing in investing countries their home country—influence global by reducing transaction information costs. This hypothesis is tested using dyadic cross-sectional data for both FDI. The findings indicate even after...

Since the collapse of Bretton Woods system, countries have been able to choose from a variety exchange-rate arrangements. We argue that politicians' incentives condition choice an arrangement. These reflect configuration domestic political institutions, particularly electoral and legislative institutions. In systems where cost defeat is high timing exogenous, politicians will be less willing forgo their discretion over monetary policy with fixed exchange rate. costs are low endogenous, more...

Abstract Much ink has been spilled over the connections between capital account liberalization and growth. One reason that previous studies have inconclusive, we show, is their failure to for impact of crises on growth capacity controls limit those disruptive output effects. Accounting these influences, it appears influence macroeconomic performance through two channels, directly (what think as positive resource allocation efficiency) indirectly (by limiting effects at home abroad). Because...

Abstract When it comes to linkages between migration and the global allocation of foreign development assistance, size immigrant population from a recipient country residing in donor is an important determinant dyadic aid commitments. Two complementary hypotheses probe this relationship. First, donors use achieve their broader immigration goals, targeting migrant-sending areas increase decrease demand for entry into country. Second, migrants already mobilize lobby additional homeland....

Abstract The aim of this article is to investigate whether or not and how immigration policies affect flows. Such policy impacts have hardly been investigated so far as the necessary data lacking. For first time, two new datasets are combined systematically measure bilateral migration flows for 33 Organisation Economic Cooperation Development (OECD) destination countries from over 170 origin period 1982–2010. study finds that an important effect on thus states able control their borders. To...

Speculative currency attacks are a regular feature of the international political economy. Nevertheless, not all speculative result in devalued currency. In many cases, politicians were willing and able to defend exchange rate peg. I develop model strategic interaction between speculators markets policymakers governments. This indicates that occur when economic fundamentals weak or there is uncertainty about capability and/or willingness governments show government's decision peg reflects...

In attempting to identify institutional factors that influence a nation's per capita growth rate, scholarship in political science has focused almost ex clusively on differences regimes. This article argues if we are interested understanding why some nations grow faster than others, then must redirect our inquiry and focus property rights. Using new measures for rights protection democracy, building an endogenous model, this study presents the first approximation of relationship between...

We construct a model of speculative trading to examine how the mean and volatility stock prices is affected both by government partisanship traders' expectations electoral victory right‐wing or left‐wing party. Our predicts that rational higher inflation under administrations lowers volume stocks traded in market. The decline leads decrease not only during incumbency governments, but also when traders expect party win elections. Conversely, expectation lower volume. This an increase tenure...

Political rights provided to immigrants by host countries have received much attention in the literature. Less attention, however, has been paid extension of extraterritorial home countries. In this article, I focus on a common type right their expatriates—the dual citizenship. Dual citizenship rights, argue, help leverage financial and human resources diasporas, encouraging both remittances return migration. test argument using migrant surveys performed six find that migrants from homelands...

Abstract We undertake an individual-level analysis of mass political behavior toward sovereign debt resettlement by leveraging the unique circumstances a 2011 referendum on repayment in Iceland. This allows us to engage broader questions about international economy. Against recent thrust growing literature, we find evidence material economic “pocketbook” effects—self-interest—on voting behavior, operating alongside symbolic/sociotropic and partisan/political logics. Contrary expectations,...

This paper examines the relationship between politics and speculative attacks in developing countries. While a burgeoning literature focuses on economic determinants of behavior, little attention has been paid to importance political factors. I examine response international capital markets electoral partisan changes sample 78 countries using monthly data from January 1975 December 1998. All other things being equal, empirical evidence indicates that are more likely (1) under left rather...

Policymakers use a fixed exchange rate regime to signal their commitment low inflation and stability. Increasing economic integration the rise of democratic institutions make it more difficult for policymakers maintain credibility this commitment. We binary probit (with variety corrections autocorrelated heteroscedastic disturbances) test hypotheses relating choice on sample 76 developing countries over period 1973–1994. The empirical analysis indicates that domestic political preferences—as...

Interest in the relationship between political democracy and economic growth has been long-standing.See, for example, S. M. Lipset, 'Some Social Requisites of Democracy: Economic Development Political Legitimacy', American Science Review, 53 (1959), 69–105. Recently this work reanalysed b y J. Helliwell, 'Empirical Linkages Democracy Growth', British Journal Science, 24 (1994), 225–48; by R. Burkhart Lewis Beck, 'Comparative The Th esis,' 88 903–10. Recently, there an explosion empirical...

3i6 Foreign exchange markets are among the deepest and widest financial in world. Technological innovations market liberal? ization have made currency enormous?by 1992, vol? ume of transactions topped over $1 trillion each day. Moreover, economic agents can trade currencies with shocking speed?during September 1992 E.M.S. crisis, British monetary authorities expended two billion dollars to support pegged value pound only a few hours. The behavior these affect not flows in? ternational...

Recent models of speculative currency crises contend that market expectations policy behavior can trigger a attack. We argue political processes and partisan objectives inform about the government's commitment to exchange rate. First, actors anticipate periods when identity government may change through an election or cabinet collapse. Second, party labels provide information traders potential government. Consequently, we probability attack will be higher markets expect end dissolution is...

This paper examines the utility of and preference for controls on short-term capital. Recent work in international political economy has argued that increasing internationalization finance constrained ability governments to pursue independent monetary policies. For most part this conclusion been reached through an examination a small number advanced industrialized countries. article argues not only globalization is far from all-encompassing but also domestic forces play more significant role...

Bilateral flows of international migrants exhibit tremendous variance both across destination countries and over time. We argue that along with economic social conditions consider the political environment when choosing among various destinations. Specifically we hypothesize a country's citizenship policy regime strength support for radical right parties are key determinants choice. test our hypotheses using an original data set bilateral migration from 178 origin into 22 period 1962-2006....

Currency crises are costly phenomena that have been exceptionally difficult to explain and predict. We comprehensively examine the relationship between political institutions currency emphasize causal linkage institutions, expectations, crises. Specifically, we argue institutional variables—particularly divided government turnover—increase variance of expectations held by speculators thereby increasing likelihood test these hypotheses using three existing economic models find variables not...