Globalization, Freedoms and Economic Convergence: An empirical exploration of a trivariate relationship using a large panel

Jorge Braga de Macedo, Joaquim Oliveira Martins and Tovar Jalles, João

No 16436, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using a large panel for 95 countries and the 1972-2014 period, this paper analyses the interactions among globalization, political & civil rights and economic convergence, through a simultaneous estimation technique. We use a multi-dimensional, de facto, and continuous measures of Freedoms and Globalization. We find a two-way positive relationship between civil liberties & political rights and economic, political and social Globalization, as well as significant two-way relationships with the economic convergence (using as a proxy the ratio of GDP per capita to the US). In this way, we extend the test for the two-way relationship between Democracy and Globalization put forward by Eichengreen and Leblang (2008). Overall, we also find a virtuous cycle between Globalization, Freedoms and Economic convergence, except for non-OECD countries at early intermediate stages of development. This positive systemic effect can be put into question by the recent negative shocks on Globalization and Freedoms related to the Covid-19 pandemic.

Keywords: Globalization; Democracy; Freedoms; Development; Convergence; Panel data; Three-stage least squares (search for similar items in EconPapers)
JEL-codes: F02 F11 F13 (search for similar items in EconPapers)
Date: 2021-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP16436 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Globalization, Freedoms and Economic convergence: an empirical exploration of a trivariate relationship using a large panel (2021)
Working Paper: Globalization, Freedoms and Economic Convergence: An empirical exploration of a trivariate relationship using a large panel (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:16436

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP16436

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().