Blouin, Arthur; Ghosal, Sayantan; Mukand, Sharun W. - 2012 - This vers.: December 2011
We analyze whether or not the globalization of capital, "disciplines" governments and improves governance. We … demonstrate that globalization affects governance, by increasing a country's vulnerability to sudden capital flight. This … increased threat of capital flight can discipline governments and improve governance and welfare by placing countries in a …