Number 115– October 2010

Globalization, Economic Freedom and Human Rights

Axel Dreher Martin Gassebner Lars-H. R. Siemers

ISSN: 1439-2305

Globalization, Economic Freedom and Human Rights

Axel Dreher a Martin Gassebner b Lars-H. R. Siemers c

October 2010

Abstract Using the KOF Index of Globalization and two indices of economic freedom, we empirically analyze whether globalization and economic liberalization affect governments’ respect for human rights using a panel of 106 countries over the 1981-2004 period. According to our results, physical integrity rights significantly and robustly increase with globalization and economic freedom, while empowerment rights are not robustly affected. Due to the lack of consensus about the appropriate level of empowerment rights as compared to the outright rejection of any violation of physical integrity rights, the global community is presumably less effective in promoting empowerment rights.

Keywords:

Human Rights, Globalization, Economic Freedom, Liberalization

JEL-Codes: D78, F55, K10, P48 a Georg-August University Goettingen, Platz der Goettinger Sieben 3, 37073 Goettingen, Germany, KOF Swiss Economic Institute, Switzerland, CESifo, and IZA, Germany. Email: mail@axel-dreher.de ETH Zurich, KOF Swiss Economic Institute, Weinbergstrasse 35, CH-8092 Zürich, Switzerland, CESifo, Germany. E-mail: gassebner@kof.ethz.ch c b

RWI Essen – Institute for Economic Research, Hohenzollernstraße 1-3, 45128 Essen, Germany. E-mail: siemers@rwi-essen.de

2 1. Introduction

At the beginning of the 21st century, governments’ disrespect for human rights is still evident in all regions of the world. Human rights violations continue to be the norm rather than the exception. According to Amnesty International (2006), millions of people worldwide are still denied fundamental rights. That being said, governments’