publication . Book . 2010

Interstate competition and political stability

Hugh-Jones, David;
Open Access English
  • Published: 01 Nov 2010
  • Publisher: Department of Economics, University of Warwick
  • Country: United Kingdom
Abstract
Previous theories of globalization have examined factor mobility’s effect on the political conflict\ud between social classes. But factor mobility also increases competition between state rulers in provid-\ud ing services for citizens. I ask how this interstate competition affects the process of political change.\ud In a simple model, interstate competition substitutes for democracy, by forcing rulers to invest in pub-\ud lic goods so as to avoid capital and labor leaving the country. As a result, citizens are less willing to\ud struggle for democracy, and rulers are less willing to oppose it, when interstate competition is strong.\ud Therefore, there is less co...
Subjects
free text keywords: JC
Related Organizations
31 references, page 1 of 3

Acemoglu, D. and J. A Robinson. 2006. Economic origins of dictatorship and democracy. Cambridge University Press.

Ashworth, S. and E. B. de Mesquita. 2006. “Monotone Comparative Statics for Models of Politics.” American Journal of Political Science 50(1):214-231.

Bates, R. H. 2008. When things fell apart: state failure in late-century Africa. Cambridge Univ Pr.

Bewley, T. F. 1981. “A critique of Tiebout's theory of local public expenditures.” Econometrica: Journal of the Econometric Society pp. 713-740.

Blonigen, B. A. 2005. “A review of the empirical literature on FDI determinants.” Atlantic Economic Journal 33(4):383-403. [OpenAIRE]

Boix, C. 2003. Democracy and Redistribution. Cambridge University Press.

Charter Cities Foundation. 2009. http://www.chartercities.org/concept. URL: http://www.chartercities.org/concept

Cheibub, J. A., J. Gandhi and J. R. Vreeland. 2009. “Democracy and dictatorship revisited.” Public Choice pp. 1-35. [OpenAIRE]

Chinn, M. D. and H. Ito. 2008. “A new measure of financial openness.” Journal of Comparative Policy Analysis: Research and Practice 10(3):309-322.

Eaton, J. and M. Gersovitz. 1984. “A theory of expropriation and deviations from perfect capital mobility.” The Economic Journal 94(373):16-40.

Eichengreen, B. and D. A. Leblang. 2006. “Democracy and globalization.” NBER Working Paper . [OpenAIRE]

Epple, D. and A. Zelenitz. 1981. “The Implications of Competition Among Jurisdictions: Does Tiebout Need Politics?” The Journal of Political Economy 89(6):1197. [OpenAIRE]

Goemans, H. E., K. S. Gleditsch and G. Chiozza. 2009. “Introducing Archigos: a dataset of political leaders.” Journal of Peace research 46(2):269. [OpenAIRE]

Heston, A., R. Summers and B. Aten. 2006. “Penn world table version 6.2.” Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania 10.

Hirschman, A. O. 1970. Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States. Harvard University Press.

31 references, page 1 of 3
Abstract
Previous theories of globalization have examined factor mobility’s effect on the political conflict\ud between social classes. But factor mobility also increases competition between state rulers in provid-\ud ing services for citizens. I ask how this interstate competition affects the process of political change.\ud In a simple model, interstate competition substitutes for democracy, by forcing rulers to invest in pub-\ud lic goods so as to avoid capital and labor leaving the country. As a result, citizens are less willing to\ud struggle for democracy, and rulers are less willing to oppose it, when interstate competition is strong.\ud Therefore, there is less co...
Subjects
free text keywords: JC
Related Organizations
31 references, page 1 of 3

Acemoglu, D. and J. A Robinson. 2006. Economic origins of dictatorship and democracy. Cambridge University Press.

Ashworth, S. and E. B. de Mesquita. 2006. “Monotone Comparative Statics for Models of Politics.” American Journal of Political Science 50(1):214-231.

Bates, R. H. 2008. When things fell apart: state failure in late-century Africa. Cambridge Univ Pr.

Bewley, T. F. 1981. “A critique of Tiebout's theory of local public expenditures.” Econometrica: Journal of the Econometric Society pp. 713-740.

Blonigen, B. A. 2005. “A review of the empirical literature on FDI determinants.” Atlantic Economic Journal 33(4):383-403. [OpenAIRE]

Boix, C. 2003. Democracy and Redistribution. Cambridge University Press.

Charter Cities Foundation. 2009. http://www.chartercities.org/concept. URL: http://www.chartercities.org/concept

Cheibub, J. A., J. Gandhi and J. R. Vreeland. 2009. “Democracy and dictatorship revisited.” Public Choice pp. 1-35. [OpenAIRE]

Chinn, M. D. and H. Ito. 2008. “A new measure of financial openness.” Journal of Comparative Policy Analysis: Research and Practice 10(3):309-322.

Eaton, J. and M. Gersovitz. 1984. “A theory of expropriation and deviations from perfect capital mobility.” The Economic Journal 94(373):16-40.

Eichengreen, B. and D. A. Leblang. 2006. “Democracy and globalization.” NBER Working Paper . [OpenAIRE]

Epple, D. and A. Zelenitz. 1981. “The Implications of Competition Among Jurisdictions: Does Tiebout Need Politics?” The Journal of Political Economy 89(6):1197. [OpenAIRE]

Goemans, H. E., K. S. Gleditsch and G. Chiozza. 2009. “Introducing Archigos: a dataset of political leaders.” Journal of Peace research 46(2):269. [OpenAIRE]

Heston, A., R. Summers and B. Aten. 2006. “Penn world table version 6.2.” Center for International Comparisons of Production, Income and Prices at the University of Pennsylvania 10.

Hirschman, A. O. 1970. Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States. Harvard University Press.

31 references, page 1 of 3
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