The globalization of trade and democracy, 1870-2000
By: J. Ernesto López Córdova, Christopher M. Meissner.
Contributors: Meissner, Christopher M.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11117; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11117.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: International trade -- History.; Globalization -- History.; Democracy -- History.; Democratization -- History.
Description: "We study whether international trade fosters democracy.  The likely endogeneity between democracy and trade is addressed via the gravity model of trade, allowing us to obtain a measure of natural openness.  This serves as our instrumental variable for actual trade openness  l̉a Frankel and Romer (1999).  We use this powerful instrument to obtain estimates of the causal impact of openness on democratization.  A positive impact of openness on democracy is apparent from about 1895 onwards.  Late nineteenth century trade globalization may have helped generate the "first wave" of democratization.  Between 1920 and 1938 countries more exposed to international trade were less likely to become authoritarian.  Finally, our post-World War II results suggest that a one standard deviation increase in trade with other countries could bring countries like Indonesia, Russia or Venezuela to be as democratic as the US, Great Britain or France.  We also see some variation in the impact of openness by region and note that commodity exporters and petroleum producers do not seem to become more democratic by exporting more of such items"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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