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Country Risk, Government Effectiveness, and Government Religious Regulation

WILLIAM R. DIPIETRO

Two potential attributes of the government that may be important for the maintenance of political stability and for the degree of polyarchy within a nation are the scope of government religious regulation and the effectiveness of the government. This paper uses cross-country regression analysis to assess the effect of government religious regulation and overall government effectiveness on polyarchy and political stability, and the effect of polyarchy and political stability on country risk.