The impact of globalization on the composition of government expenditures: Evidence from panel data

Public Choice

Volumn 134, Issue 3-4, 2008, Pages 263-292

  Dreher, Axel ^a,c   Sturm, Jan Egbert ^a,c   Ursprung, Heinrich W ^b  

^a KOF SWISS ECONOMIC INSTITUTE   (Switzerland)

^b UNIVERSITY OF KONSTANZ   (Germany)

^c CESIFO   (Germany)

Author keywords

Economic policy; Globalization; Government expenditure composition; Tax competition

Indexed keywords

EID: 38749087654     PISSN: 00485829     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11127-007-9223-4     Document Type: Article

References (67)

1. Adsera, A., & Boix, C. (2002). Trade, democracy, and the size of the public sector: The political underpinnings of openness. International Organization, 56, 229-262.
2. Ansell, B. (2003, August). Human capital and globalization (Paper presented at the American Political Science Association 2003 Annual Meeting, Philadelphia).
3. Ansell, B. (2004, April). Education through globalization (Paper presented at the American Political Science Association Annual Meeting, Chicago).
4. Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29-51.
5. Aubin, C., Berdot, J.-P., Goyeau, D., & Lafay, J.-D. (1988). The growth of public expenditure in France. In J. A. Lybeck & M. Henrekson (Eds.), Explaining the growth of government (pp. 201-230). Amsterdam: North-Holland.
6. Avelino, G., Brown, D., & Hunter, W. (2005). The effects of capital mobility, trade openness, and democracy on social spending in Latin America, 1980-1999. American Journal of Political Science, 49(3), 625-641.
7. Bai, C.-E., & Wei, S.-J. (2001). The quality of bureaucracy and capital account policies. World Bank Working Paper Series, No. 2575.
8. Bengoa, M., & Sanches-Robles, B. (2003). Foreign direct investment, economic freedom and growth: New evidence from Latin America. European Journal of Political Economy, 19, 529-545.
9. Bergh, A. (2006). Explaining welfare state survival: The role of economic freedom and globalization. Ratio Institut, mimeo.
10. Bjørnskov, C. (2006). Globalization and institutions: New evidence using the Dreher Index. Aarhus University, mimeo.
11. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115-143.
12. Breton, A., & Ursprung, H. W. (2002). Globalisation, competitive governments, and constitutuional choice in Europe. In H. Kierzkowski (Ed.), Europe and globalization (pp. 274-301). London: Palgrave Macmillan.
13. Bretschger, L., & Hettich, F. (2002). Globalisation, capital mobility and tax competition: Theory and evidence for OECD countries. European Journal of Political Economy, 18, 695-716.
14. Busse, M. (2004). Transnational corporations and repression of political rights and civil liberties: An empirical analysis. Kyklos, 57, 45-66.
15. Carey, D., & Rabesona, J. (2002). Tax ratios on labour and capital income and on consumption. OECD Economic Studies, 35(2), 129-174.
16. Cusack, T. R. (1997). Partisan politics and public finance: Changes in public spending in the industrialized democracies 1955-1989. Public Choice, 91, 375-395.
17. Devereux, M. P., & Griffith, R. (2003). Evaluating tax policy for location decisions. International Tax and Public Finance, 10(2), 107-126.
18. Devereux, M. P., Lockwood, B., & Redoano, M. (2002). Do countries compete over corporate tax rates? University of Warwick, mimeo.
19. Dooley, M., & Isard, P. (1980). Capital controls, political risk and deviations from interest rate parity. Journal of Political Economy, 88, 370-384.
20. Dreher, A. (2006a). The influence of globalization on taxes and social policy - An empirical analysis for OECD countries. European Journal of Political Economy, 22(1), 179-201.
21. Dreher, A. (2006b). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110.
22. Dreher, A., & Gaston, N. (2007a). Has globalization really had no effect on unions? Kyklos, 60(2), 165-186.
23. Dreher, A., & Gaston, N. (2007b, forthcoming). Has globalisation increased inequality? Review of International Economics.
24. Dreher, A., Gaston, N., & Martens, P. (2007). Measuring globalisation (book manuscript).
25. Dreher, A., & Siemers, L.-H. R. (2005). The intriguing nexus between corruption and capital account restrictions. KOF Working Paper 113, ETH Zurich.
26. Exbrayat, N., Gaigné, C., & Riou, S. (2006). Trade integration and the destination of public expenditures. University of Saint-Etienne, mimeo.
27. Garrett, G. (1995). Capital mobility, trade, and the domestic politics of economic policy. International Organization, 49, 657-687.
28. Garrett, G. (1998a). Global markets and national politics: Collision course or virtuous circle? International Organization, 52(4), 787-824.
29. Garrett, G. (1998b). Governing the global economy: Economic policy and market integration around the world. Yale University, mimeo.
30. Garrett, G., & Mitchell, D. (1997). International risk and social insurance: Reassessing the globalization-welfare state nexus. Yale University, mimeo.
31. Garrett, G., & Mitchell, D. (2001). Globalization, government spending and taxation in the OECD. European Journal of Political Research, 39, 145-177.
32. Garrett, G., & Rodden, J. (2000, April). Globalization and decentralization (Prepared for the Annual Meeting of the Midwest Political Science Association, Chicago).
33. Gersbach, H., & Schmutzler, A. (2005). The effects of globalization on worker training. CEPR DP, No. 4879.
34. Giavazzi, F., & Pagano, M. (1988). Capital Controls in the EMS. In D. E. Fair & C. de Boissieu (Eds.), International monetary and financial integration: The European dimension (pp. 261-289). Dordrecht: Kluwer.
35. Glick, R., & Hutchison, M. M. (2000). Capital controls and exchange rate instability in developing economies. Research Working Paper PB-005, FRBSF Center for Pacific Basin Monetary and Economic.
36. Grilli, V., & Milesi-Ferretti, G. M. (1995). Economic effects and structural determinants of capital controls. IMF Staff Papers, 42(3), 517-551.
37. Gruben, W. C., & McLeod, D. (2001). Capital account liberalization and disinflation in the 1990s. CLAE Working Paper 0101, Federal Reserve Bank of Dallas.
38. Gwartney, J., & Lawson, R. (2001). Economic freedom of the world. Annual report. Retrieved June 22, 2007. http://www.freetheworld.org/.
39. Harms, P., & Ursprung, H. W. (2002). Do civil and political repression really boost foreign direct investments? Economic Inquiry, 40, 651-663.
40. Hicks, A., & Swank, D. (1992). Politics, institutions, and welfare spending in industrialized democracies 1960-82. American Political Science Review, 86, 658-674.
41. Huber, E., Ragin, C., & Stephens, J. (1993). Social democracy, Christian democracy, constitutional structure, and the welfare state. American Journal of Sociology, 99, 711-749.
42. Iversen, T., & Cusack, T. (2000). The causes of welfare state expansion: Deindustrialization or globalization? World Politics, 52, 313-349.
43. Kaufman, R., & Segura-Ubiergo, A. (2001). Globalization, domestic politics, and social spending in Latin America: A time-series cross-section analysis, 1973-1997. World Politics, 53, 553-587.
44. Kittel, B., & Winner, H. (2005). How reliable is pooled analysis in political economy? The globalization-welfare state nexus revisited. European Journal of Political Research, 44(2), 269-293.
45. Lamla, M. (2005). Long-run determinants of pollution: A robustness analysis. ETH Zurich, mimeo.
46. Li, Q., & Reuveny, R. (2003). Economic globalization and democracy: An empirical investigation. British Journal of Political Science, 33, 29-54.
47. Lin, S. (1992). The effect of inflation on government expenditure: New evidence. Atlantic Economic Journal, 20(4), 86.
48. Milesi-Ferretti, G. M. (1998). Why capital controls? Theory and evidence. In S. Eijffinger & H. Huizinga (Eds.), Positive political economy: Theory and evidence (pp. 217-247). Cambridge: Cambridge University Press.
49. Nickell, S. J. (1981). Biases in dynamic models with fixed effects. Econometrica, 49, 1417-1426.
50. OECD (2004). Public expenditure database. CD-Rom, Paris.
51. Plümper, T., Manow, P., & Troeger, V. (2005). Pooled data analysis in the comparative political economy of the welfare state: A note on methodology and theory. European Journal of Political Research, 44(2), 327-354.
52. Quinn, D. (1997). The correlates of change in international financial regulation. American Political Science Review, 91, 531-551.
53. Richards, D., Gelleny, R., & Sacko, D. (2001). Money with a Mean Streak? Foreign economic penetration and government respect for human rights in developing countries. International Studies Quarterly, 45, 219-239.
54. Rodrik, D. (1997). Has globalization gone too far? Washington: Institute for International Economics.
55. Rodrik, D. (1998). Why do more open economies have bigger governments? Journal of Political Economy, 106, 997-1032.
56. Roodman, D. (2005). xtabond2: Stata module to extend xtabond dynamic panel data estimator. Washington: Center for Global Development.
57. Rudra, N. (2002). Globalization and the decline of the welfare state in less developed countries. International Organization, 56, 411-445.
58. Rudra, N. (2004). Openness, welfare spending and inequality in the developing world. International Studies Quarterly, 48, 683-709.
59. Rudra, N. (2005). Globalization and the strengthening of democracy in the developing world. American Journal of Political Science, 49(4), 704-730.
60. Schulze, G., & Ursprung, H. W. (1999). Globalization of the economy and the nation state. The World Economy, 22, 295-352.
61. Schulze, G., & Ursprung, H. W. (2001). International environmental economics: A survey of the issues. Oxford: Oxford University Press.
62. Sinn, H. W. (2003). The new systems competition. Oxford: Blackwell.
63. Swank, D. (1997). Global markets, democratic institutions, and the public economy in advanced industrial societies. Marquette University, mimeo.
64. Tsai, M.-C. (2007). Does globalization affect human well-being? Social Indicators Research, 81(1), 103-126.
65. Tytell, I., & Wei, S. (2004). Does financial globalization induce better macroeconomic policies? IMF Working Paper No. WP/04/84.
66. Windmeijer, F. (2005). A finite sample correction for the variance of linear efficient two-step GMM estimators. Journal of Econometrics, 126(1), 25-51.
67. World Bank (2003). World development indicators. CD-Rom, Washington, DC.