Blouin, Arthur; Ghosal, Sayantan; Mukand, Sharun - Department of Economics, University of Warwick - 2011
demonstrate that globalization a ects governance, by increasing a country's vulnerability to sudden capital ight. This increased … threat of capital ight can discipline governments and improve governance and welfare by placing countries in a `golden … incentives that catalyzes mis)governance. Accordingly, the paper suggests a novel (and quali ed) role for capital controls …