Globalization and Economic Redistribution in Central and Eastern Europe Thirty Years after the Transition
Bilyana Petrova (Stone Center on Socio-Economic Inequality, The Graduate Center, CUNY, and Max Weber Programme at the European University Institute)
How is globalization shaping economic redistribution in Central and Eastern Europe thirty years after the start of the post-communist transition? This article shows that greater economic openness, measured through trade, foreign direct investment inflows, and capital account openness, is associated with higher levels of state-sponsored redistribution in the region. Nevertheless, this relationship is conditional on political institutions. National governments tend to reduce income differences resulting from globalization much more in political systems characterized by higher accountability and lower disproportionality.
Full article is available here.