Globalization and the (Mis)Governance of Nations
Blouin, Arthur, Ghosal, Sayantan and Mukand, Sharun W. (2012) Globalization and the (Mis)Governance of Nations. Working Paper. Centre for Competitive Advantage in the Global Economy, Department of Economics, University of Warwick, Coventry. (Unpublished)Full text not available from this repository.
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
We analyze whether or not the globalization of capital, `disciplines' governments and improves governance. We demonstrate that globalization a�ects governance, by increasing a country's vulnerability to sudden capital ight. This increased threat of capital flight can discipline governments and improve governance and welfare by placing countries in a `golden straitjacket'. However, globalization may also `overdiscipline' governments - resulting in a perverse impact on governmental incentives that catalyzes (mis)governance. Accordingly, the paper suggests a novel (and quali�ed) role for capital controls. Finally, we provide some suggestive evidence consistent with the predictions from our theoretical framework.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
|Divisions:||Faculty of Social Sciences > Economics|
|Series Name:||CAGE Online Working Paper Series|
|Publisher:||Centre for Competitive Advantage in the Global Economy, Department of Economics, University of Warwick|
|Place of Publication:||Coventry|
|Status:||Not Peer Reviewed|
Actions (login required)