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This study examines the relationships between democratic politics and systematic (or country-specific) financial risk. Low financial risk is crucial to any well-functioning economy, as it encourages capital investment, facilitates growth, and enhances overall economic performance. Up until now,...
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, wherein policymakers have access to an expropriation technology that can be used to extract resources from foreign investors … political equilibrium exhibits over-expropriation and under-investment even when there is no political uncertainty because …
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