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Interstate competition and political stability
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Hugh-Jones, David (2010) Interstate competition and political stability. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2010 (Number 25).
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Text (Working paper)
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
Previous theories of globalization have examined factor mobility’s effect on the political conflict
between social classes. But factor mobility also increases competition between state rulers in provid-
ing services for citizens. I ask how this interstate competition affects the process of political change.
In a simple model, interstate competition substitutes for democracy, by forcing rulers to invest in pub-
lic goods so as to avoid capital and labor leaving the country. As a result, citizens are less willing to
struggle for democracy, and rulers are less willing to oppose it, when interstate competition is strong.
Therefore, there is less conflict over the level of democracy. The theory is tested on a post-war panel
of countries, using neighboring countries’ financial openness as a proxy for factor mobility. As the
theory predicts, states experience fewer changes in their level of democracy when their neighbors are
financially open.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Alternative Title: | |||||
Subjects: | J Political Science > JC Political theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Globalization , Democracy, Political science | ||||
Series Name: | CAGE Online Working Paper Series | ||||
Publisher: | Department of Economics, University of Warwick | ||||
Place of Publication: | Coventry, UK | ||||
Official Date: | November 2010 | ||||
Dates: |
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Volume: | Volume 2010 | ||||
Number: | Number 25 | ||||
Number of Pages: | 37 | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Date of first compliant deposit: | 1 August 2016 | ||||
Date of first compliant Open Access: | 1 August 2016 |
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