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Globalization, Exposure to World Markets, and Policy Constraints

Globalization, Exposure to World Markets, and Policy Constraints

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The political consequences of market integration, on the one hand, and the workings of representation in liberal democracies, on the other, have each received a good deal of attention. But if the contours of debates within these two research traditions are well-defined, the connections between them are not. An understanding of globalization’s polit...

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... that policy constraint also may be shaped by politics such that supporters of the sitting government may be more likely to shift assignment for current policies-particularly in hard times, I include a variable scored 1 if the individual voted for the party of the sitting chief executive in preceding national election. Table 1 reports results from regressing RMC on these covariates. 6 None of the objective glob- alization indicators yield statistically significant effects. ...

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... However, support for this hypothesis is mixed and many have argued that the effect of globalization has been to widen the preexisting differences among advanced capitalist political economies (Hellwig, 2019). There is also literature showing evidence that globalization can actually have the reverse effect. ...
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One of the most significant economic trends in the last decades has been the integration of countries in international markets. What have been the consequences of global economic integration upon the territorial organization of the states? Has it contributed to centralize powers or to further decentralization? The literature so far has provided inconclusive evidence. In this paper we shed new light on the relationship between economic globalization and territorial politics by using a varied source of data such as the Regional Authority Index, and the KOF indices of globalization for the period 1970-2010. Results show that economic globalization is positively associated to decentralization, particularly in those countries with more regionalist parties and where levels of inequality are lower. Conversely, higher levels of regional inequality can revert the effect.