The authors would like to thank Steve Chan, Stephan Haggard, Eckard Janeba, Robert Kaufman, David Leblang, Keith Maskus, Jorge Oliveira Pires, Dennis Quinn, Nita Rudra, Evelyne Huber, Kurt Weyland, the editors, and three anonymous referees for their helpful comments and suggestions. Special thanks go to Raúl Madrid and Ahmed Mushfiq Mobarak. We would also like to acknowledge support from GV-Pesquisa (FGV-EAESP).
The Effects of Capital Mobility, Trade Openness, and Democracy on Social Spending in Latin America, 1980–1999
Article first published online: 18 MAY 2005
American Journal of Political Science
Volume 49, Issue 3, pages 625–641, July 2005
How to Cite
Avelino, G., Brown, D. S. and 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: 625–641. doi: 10.1111/j.1540-5907.2005.00146.x
- Issue published online: 18 MAY 2005
- Article first published online: 18 MAY 2005
Empirical studies measuring the impact of globalization on social spending have appeared recently in leading journals. This study seeks to improve upon previous work by (1) employing a more sophisticated and comprehensive measure of financial openness; (2) using a more accurate measure of trade openness based on purchasing power parities; and (3) relying on social spending data that are more complete than those used by previous studies on Latin America. Our estimates suggest that several empirical patterns reported in previous work deserve a second look. We find that trade openness has a positive association with education and social security expenditures, that financial openness does not constrain government outlays for social programs, and that democracy has a strong positive association with social spending, particularly on items that bolster human capital formation.