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The interplay between bureaucracy and globalization

Mirkina, Irina (2013) The interplay between bureaucracy and globalization. Advisor: Bergh, Prof. Andreas. Coadvisor: Masala, Dr. Antonio . pp. 135. [IMT PhD Thesis]

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Abstract

This research focuses on a twofold issue: 1) the challenges that globalization creates to institutions, having to deal with a new international order; 2) the challenges that state governance creates for global actors, having to adapt themselves to the national and sub-national peculiarities. The globalization–bureaucracy interplay is a politically contested phenomenon, in which different models of interactions among states, firms, and citizens appear and transform both nationally and internationally. At the national level, the impact of globalization on quality of governance is examined empirically across countries. The analysis with fixed effects models is based on a panel dataset, covering over 100 countries in the period 1992–2010. The study examines an effect from both economic and social globalization factors on different governance features, including governance effectiveness, regulatory quality, control of corruption, accountability, political stability, and rule of law. The findings show that various governance features seem to diverge in how easily they respond to the new state of affairs that follows with more globalization. Moreover, in line with the theoretical predictions, globalization affects institutions differently depending on the country‘s level of development. The results thus suggest that the previous findings on positive effects of international economic flows on institutional quality are likely driven by changes in rich countries. The impact of institutional policies on globalization factors is analyzed at the sub-national level, using a panel dataset of 82 Russian regions in the period 1995–2010. The study takes an advantage of examining different types of fiscal incentives, introduced in some regions of Russia in 2003, treating them as a natural experiment and estimating the causal effect of tax concessions on foreign direct investment inflows with two causal inference techniques: difference in differences estimation and synthetic controls method. The findings confirm that tax concessions for investment lead to more foreign direct investment inflows. However, selective tax concessions for the government sanctioned important investment projects do not have the expected effect, or the effect is sporadic and weak at best. As governments seek to increase the national and sub-national attractiveness for foreign investors, these findings have important implications for the design of institutional policies.

Item Type: IMT PhD Thesis
Subjects: J Political Science > JA Political science (General)
PhD Course: Political Science and Institutional Change
Identification Number: 10.6092/imtlucca/e-theses/112
Date Deposited: 26 Nov 2013 14:33
URI: http://e-theses.imtlucca.it/id/eprint/112

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