Does democracy promote capital account liberalization?

  title={Does democracy promote capital account liberalization?},
  author={David A. Steinberg and Stephen C. Nelson and Christoph Nguyen},
  journal={Review of International Political Economy},
  pages={854 - 883}
Abstract Conventional wisdom maintains that democracy promotes market-oriented economic reforms. This paper argues that democracy’s effect on economic liberalization hinges on international-systemic factors. To develop this argument, we focus on one important reform issue: capital account liberalization. We hypothesize that the level of financial openness abroad moderates the relationship between democracy and financial policy at home. An open global financial system increases societal support… Expand
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