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Globalization and institutional quality - A panel data analysis

Bergh, Andreas LU ; Mirkina, Irina V LU and Nilsson, Therese LU (2014) In Oxford Development Studies 42(3). p.365-394
Abstract (Swedish)
Abstract in Undetermined

Using data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyse the relationship between economic and social globalization and six measures of institutional quality, thereby testing Montesquieu's doux commerce thesis, that economic and social interaction lead to improved institutional quality. Results suggest that increasing economic flows and social globalization associate with improving institutions in rich countries, while correlations are negative in poor countries. Our findings also indicate that the negative relationship in poor countries relates to the abundance of natural resources, and should not be interpreted as a causal... (More)
Abstract in Undetermined

Using data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyse the relationship between economic and social globalization and six measures of institutional quality, thereby testing Montesquieu's doux commerce thesis, that economic and social interaction lead to improved institutional quality. Results suggest that increasing economic flows and social globalization associate with improving institutions in rich countries, while correlations are negative in poor countries. Our findings also indicate that the negative relationship in poor countries relates to the abundance of natural resources, and should not be interpreted as a causal effect. In summary, results are consistent with the doux commerce thesis but also suggest that the previous findings of positive effects of trade on institutional quality are driven by the relationship in rich countries. We should not expect globalization alone to mitigate the adverse effects of the resource curse in developing countries (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Oxford Development Studies
volume
42
issue
3
pages
365 - 394
publisher
Taylor & Francis
external identifiers
  • scopus:84904401578
ISSN
1360-0818
DOI
10.1080/13600818.2014.884555
language
English
LU publication?
yes
id
13ca603c-8375-4bfe-b2f6-767ae514fa4c (old id 3992345)
date added to LUP
2013-08-22 09:01:22
date last changed
2017-01-01 05:52:51
@article{13ca603c-8375-4bfe-b2f6-767ae514fa4c,
  abstract     = {<b>Abstract in Undetermined</b><br/><br>
Using data on institutional quality and the KOF Globalization Index, we examine over 100 countries from 1992 to 2010 to analyse the relationship between economic and social globalization and six measures of institutional quality, thereby testing Montesquieu's doux commerce thesis, that economic and social interaction lead to improved institutional quality. Results suggest that increasing economic flows and social globalization associate with improving institutions in rich countries, while correlations are negative in poor countries. Our findings also indicate that the negative relationship in poor countries relates to the abundance of natural resources, and should not be interpreted as a causal effect. In summary, results are consistent with the doux commerce thesis but also suggest that the previous findings of positive effects of trade on institutional quality are driven by the relationship in rich countries. We should not expect globalization alone to mitigate the adverse effects of the resource curse in developing countries},
  author       = {Bergh, Andreas and Mirkina, Irina V and Nilsson, Therese},
  issn         = {1360-0818},
  language     = {eng},
  number       = {3},
  pages        = {365--394},
  publisher    = {Taylor & Francis},
  series       = {Oxford Development Studies},
  title        = {Globalization and institutional quality - A panel data analysis},
  url          = {http://dx.doi.org/10.1080/13600818.2014.884555},
  volume       = {42},
  year         = {2014},
}