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Stronger impacts arise with longer democratic histories, faster growth, higher public goods spending, cultural closeness, import-driven channels, and partner specialization in institution- and trust-intensive goods.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & 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Magistretti  \nJanuary 2023  \nEconomic Integration and the Transmission of Democracy ∗  \nMarco Tabellini† Giacomo Magistretti‡  \nJanuary 2023  \nAbstract  \nIn this paper, we study the effects of economic integration with democracies on individuals’democratic values and on countries’ institutions. We combine survey data with country level measures of democracy from 1960 to 2015, and exploit improvements in air, relative to sea, transportation to derive a time-varying instrument for trade. We find that economic integration with democracies increases both citizens’ support for democracy and countries’ democracy scores. Instead, trade with non-democracies has no impact on either attitudes or institutions. The effects of trade with democracies are stronger when partners have a longer history of democracy, grow faster, spend more on public goods, and are culturally closer. They are also driven by imports, rather than exports, and by integration with partners that export higher quality goods and that account for a larger share of a country’s trade in institutionally intensive, cultural, and consumer goods as well as in goods that involve more face-to-face interactions and entail higher levels of bilateral trust. These patterns are consistent with trade in goods favoring the transmission of democracy by signaling the (actual or perceived) desirability of the latter. We examine alternative mechanisms, and conclude that none of them can, alone, explain our findings.  \nKeywords: Democracy, political preferences, institutions, economic integration.  \nJEL Classification: F14, F15, P16 .  \n∗ We thank Daron Acemoglu, Alberto Alesina, Sam Bazzi, Leonardo Bursztyn, Matteo Camboni, Arnaud Costinot, Leonardo D’Amico, Ben Enke, Jeff Frieden, Oded Galor, Nicola Gennaioli, Francesco Giavazzi, Paola Giuliano, Elhanan Helpman, Eliana La Ferrara, Benjamin Marx, Ross Mattheis, Mart´ı Mestieri, Nathan Nunn, Elias Papaioannou, Luigi Pascali, Torsten Persson, Vincent Pons, Michael Porcellacchia, Dani Rodrik, Jesse Shapiro, Bob Staiger, Guido Tabellini, Andrea Tesei, Nico Voigtlaender, Guglielmo Zappal`a, and participants at several conferences and seminars for useful comments. Angelo Azzolini, Adriano De Ruvo, Silvia Farina, Yuri Filippone, Gabriele Romano, Federico Scabbia, Monia Tomasella, Francesco Toti, Luca Zanotti, Guglielmo Zappal`a, and Zhengyang Zhou provided excellent research assistance. All remaining errors are ours. A previous version of the paper circulated with the title “Economic Integration and Democracy: An Empirical Investigation.” The views expressed in this paper are those of the authors and do not necessarily reflect those of the International Monetary Fund, its Executive Board, or its Management.  \n†Harvard Business School, NBER, CEPR, and [IZA. Email: mtabellini@hbs.edu](IZA. Email: mtabellini@hbs.edu)  \n‡International Monetary Fund. Email: [gmagistretti@imf.org](gmagistretti@imf.org)  \n1 Introduction  \nThe post-1960 surge in globalization coincided with the spread of democracy across the world (Figure 1) . As a result, citizens of non-democratic countries might have been increasingly exposed to the institutions and the values of their more democratic partners. Do trade and, more broadly, economic integration with democratic partners favor the transmission of democratic values and the consolidation of democracy across countries? Several papers have documented that longer exposure to domestic democratic institutions improves individuals’ attitudes towards democracy and favors the stability of the latter (Besley and Persson, 2019; Fuchs-Sch¨undeln and Sch¨undeln, 2015; Persson and Tabellini, 2009), especially when the country is economically and socially successful (Acemoglu et al. , 2021) .1 Yet, less is known about the extent to which democracy can travel across countries, through economic integration. This issue is particularly important today","cbCaihf3prmfSJPv","https://ap.wps.com/l/cbCaihf3prmfSJPv","pdf",3071827,133,"English","# Abstract\n## Introduction\n## Empirical Strategy and Instrument Design","[{\"question\":\"How does economic integration with democracies affect citizens’ democratic values?\",\"answer\":\"The paper finds that economic integration with democracies increases citizens’ support for democracy.\"},{\"question\":\"What is the observed effect of trade with non-democratic partners?\",\"answer\":\"Trade with non-democracies has no impact on individuals’ democratic attitudes or countries’ institutions.\"},{\"question\":\"How does the study identify the causal effect of trade with democracies?\",\"answer\":\"It constructs a time-varying instrument for trade by exploiting changes in the importance of air relative to sea transportation since 1960, driven by geographic differences in exposure to air-transport technological change.\"}]","Economic Integration and the Transmission of Democracy | PDF",1789735780,335]