We are grateful for financial assistance provided by the National Science Foundation (SBR-9729766 and SBR-9810410), the McDonough School of Business, and the Graduate School of Arts and Sciences, Georgetown University. This project has evolved from several other projects, done in collaboration with Carla Inclán and John Woolley. We would especially like to thank the participants at the May 2002 conference on diffusion held at Yale University, organized by Geoff Garrett and Beth Simmons, participants at a panel at the 2002 annual meeting of the American Political Science Association in Boston, as well as the 2003 UCLA and Harvard conferences (organized by Garrett, Simmons, and Frank Dobbin). We also thank Philip Lane and seminar participants at Trinity College, Dublin. Beth Simmons, Geoff Garrett, and Frank Dobbin provided very detailed and helpful suggestions. Keith Ord deserves special thanks for assisting us with methods. We also thank Rob Franzese, John Freeman, Stef Haggard, Jude Hays, Lars Jonung, Jeff Macher, Peter Mair, John Mayo, Pietra Rivoli, Andy Sobel, Duane Swank, Tom Willett, and Bennet Zelner for their comments. Alberto Ciganda and Sarah Zhu provided able assistance with the dataset. The authors are responsible for all errors.
Ideology and Voter Preferences as Determinants of Financial Globalization
Version of Record online: 22 MAR 2007
American Journal of Political Science
Volume 51, Issue 2, pages 344–363, April 2007
How to Cite
Quinn, D. P. and Toyoda, A. M. (2007), Ideology and Voter Preferences as Determinants of Financial Globalization. American Journal of Political Science, 51: 344–363. doi: 10.1111/j.1540-5907.2007.00255.x
- Issue online: 22 MAR 2007
- Version of Record online: 22 MAR 2007
We propose that the global spread of ideas affects international economic openness policies, and that to omit ideology as an explanatory variable for economic globalization is to risk omitted variable bias. Using voting data, we create measures of global ideology regarding economic openness and propose that changes in both global and domestic ideology influence how open or closed to international finance an economy is. We also test other influences on liberalization, including proposed state-centered diffusion mechanisms. Using PCSTS and system-GMM models, we estimate the determinants of change in international capital account regulation for 82 countries, 1955 to 1999. We thereby examine diffusion of both liberalizations (1950s and 1990s) and closures (1960s and 1970s). Changes in both global and domestic ideology robustly influence liberalization and closure. The capital account policies of neighboring countries (positively) and of the leading economies (negatively) also influenced a country's capital account liberalization.