Why doesn't capitalism flow to poor countries?

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Why doesn't capitalism flow to poor countries ...
Rafael Di Tella
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Last edited by MARC Bot
December 19, 2020 | History

Why doesn't capitalism flow to poor countries?

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"We find anecdotal evidence suggesting that governments in poor countries have a more left wing rhetoric than those in OECD countries. Thus, it appears that capitalist rhetoric doesn't flow to poor countries. A possible explanation is that corruption, which is more widespread in poor countries, reduces more the electoral appeal of capitalism than that of socialism. The empirical pattern of beliefs within countries is consistent with this explanation: people who perceive corruption to be high in their country are also more likely to lean left ideologically (and to declare support for a more intrusive government in economic matters). Finally, we present a model explaining the corruption-left connection. It exploits the fact that an act of corruption is more revealing about the fairness type of a rich capitalist than of a poor bureaucrat. After observing corruption, voters who care about fairness react by increasing taxes and moving left. There is a negative ideological externality since the existence of corrupt entrepreneurs hurts good entrepreneurs by reducing the electoral appeal of capitalism."--abstract.

Publish Date
Language
English
Pages
37

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Edition Availability
Cover of: Why doesn't capitalism flow to poor countries?
Why doesn't capitalism flow to poor countries?
2007, National Bureau of Economic Research
in English

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Book Details


Edition Notes

"June 2007"

Includes bibliographical references (p. 35-37).

Also available in PDF from the NBER world wide web site (www.nber.org).

Published in
Cambridge, Mass
Series
NBER working paper series -- no. 13164., Working paper series (National Bureau of Economic Research) -- working paper no. 13164.

Classifications

Library of Congress
HB1

The Physical Object

Pagination
37 p. ;
Number of pages
37

ID Numbers

Open Library
OL17634371M
LCCN
2007616320
OCLC/WorldCat
155343095

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History

Download catalog record: RDF / JSON / OPDS | Wikipedia citation
December 19, 2020 Edited by MARC Bot import existing book
December 15, 2009 Edited by WorkBot link works
April 25, 2009 Edited by ImportBot add OCLC number
September 29, 2008 Created by ImportBot Imported from Oregon Libraries MARC record