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We introduce financial frictions in a two sector model of international trade with heterogeneous agents. The level of specialization in the economy (economic development) depends on the quality of financial institutions. Underdeveloped financial markets prohibit an economy to specialize in...
Persistent link: https://www.econbiz.de/10008833896
Using the KOF Index of Globalization and two indices of economic freedom, we empirically analyze whether globalization …-2004 period. According to our results, physical integrity rights significantly and robustly increase with globalization and …
Persistent link: https://www.econbiz.de/10008727302
According to the disciplining hypothesis, globalization restrains governments by inducing increased budgetary pressure … globalization (“compensation hypothesis”). Employing two different datasets and various measures of globalization, we analyze … whether globalization has indeed influenced the composition of government expenditures. For a sample of 108 countries, we …
Persistent link: https://www.econbiz.de/10005766280