We apply Leeson and Dean’s (2009) method for studying democratic dominoes to capitalist spillovers to compare the rates at which capitalism and democracy spread between countries. We find that capitalism and democracy spread at approximately the same modest rate.

We apply Leeson and Dean's (2009) method for studying democratic dominoes to capitalist spillovers to compare the rates at which capitalism and democracy spread between countries. We find that capitalism and democracy spread at approximately the same modest rate

According to the democratic domino theory, increases or decreases in democracy in one country spread and “infect” neighboring countries, increasing or decreasing their democracy in turn. Using spatial econometrics and panel data that covers over 130 countries between 1850 and 2000, this...