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Congressional Politics of International Financial Rescues
Author(s) -
Broz J. Lawrence
Publication year - 2005
Publication title -
american journal of political science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 6.347
H-Index - 170
eISSN - 1540-5907
pISSN - 0092-5853
DOI - 10.1111/j.1540-5907.2005.00137.x
Subject(s) - politics , voting , political science , member states , executive branch , political economy , economics , public administration , business , international economics , law , european union
In the 1990s, the American executive organized financial rescues for Mexico and several Asian economies. These rescues were controversial in Congress, where members voted repeatedly to reduce or eliminate the executive's freedom to engage in them. I analyze these roll calls with an eye toward explaining who opposes and who supports international financial rescues. I argue that the interests of private actors (district constituencies and interest groups) have an important effect on member voting. Following Stolper‐Samuelson reasoning, I find that a member is significantly more likely to favor (oppose) rescues as the proportion of high‐skilled (low‐skilled) workers in a district increases. In addition, I find that campaign contributions from international banks increase the probability that a member will vote in favor of rescues. Overall, the findings suggest that the distributional effects of rescues find expression in Congress and constrain U.S. international financial policymaking.