Globalization, freedoms and economic convergence : an empirical exploration of a trivariate relationship using a large panel

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

http://hdl.handle.net/10400.5/21700

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Authors

Macedo, Jorge Braga de

Martins, Joaquim Oliveira

Jalles, João Tovar

Abstract(s)

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 nonOECD 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

URI

http://hdl.handle.net/10400.5/21700

Citation

Macedo, Jorge Braga de, Joaquim Oliveira Martins e Joáo Tovar Jalles (2021). "Globalization, freedoms and economic convergence : an empirical exploration of a trivariate relationship using a large panel". Instituto Superior de Economia e Gestão – REM Working paper nº 0189 – 2021