BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

GLOBALIZATION-DEMOCRACY NEXUS: EMPIRICAL EVIDENCE FROM SOUTH ASIA

Author: Rukhsana Ahmed

DOI Link: https://www.doi.org/ BIISSj2003v24n4a3

ABSTRACT

The paper examines how globalization affects the level of democracy in South Asia. To test this question, conflicting theoretical positions in the literature -globalization enhances democracy; globalization hinders democracy; and globalization does not necessarily affect democracy -are evaluated empirically. The effect of FDI on political rights is measured in 5 South Asian countries using pooled time-series cross-sectional data for the period 1983 to 1999. Several statistical methods are conducted to test the link between FDI and political rights. Based on the results. The study finds that a positive effect on political rights should be expected from an increase in FDJ. As a result of this finding, the paper concludes that globalization is likely to promote democratic governance in South Asia.