Global trade openness impacts inequality and regime stability, shaping democratization waves.
The article discusses how inequality, factor prices, and political regimes are connected. It suggests that when inequality is high, the cost of democratization also goes up. The researchers propose a model where the power of the poor to cause change depends on what resources they have and how open the global economy is. They found that the interaction between labor supply and global trade openness affects regime stability and democratization. This shows that changes in the international economy can impact how likely democracies are to form.