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Risk and trade regimes: another exploration

Author

Listed:
  • Bates, Robert H.
  • Brock, Philip
  • Tiefenthaler, Jill

Abstract

An analysis of a small sample of countries shows that the higher the level of termsof-trade risk that a nation faces in international markets, the more likely it is to increase barriers. The analysis also shows that the greater the availability of social insurance programs mounted by a nation's government, the less likely it is to block free trade. In comparison with the small open economies of Western Europe, therefore, developing countries may remain protectionist because they lack the resources to mount internal programs of transfer payments as a means of coping with risk from international markets.

Suggested Citation

  • Bates, Robert H. & Brock, Philip & Tiefenthaler, Jill, 1991. "Risk and trade regimes: another exploration," International Organization, Cambridge University Press, vol. 45(1), pages 1-18, January.
    • Handle: RePEc:cup:intorg:v:45:y:1991:i:01:p:1-18_00
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    Cited by:

    1. Fuchs, Michaela & Wohlrabe, Klaus, 2008. "Institutions, trade, and integration: what can be expected within the enlarged EU?," Dresden Discussion Paper Series in Economics 16/08, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    2. Hausmann, Ricardo & Gavin, Michael, 1996. "Securing Stability and Growth in a Shock Prone Region: The Policy Challenge for Latin America," IDB Publications (Working Papers) 6191, Inter-American Development Bank.
    3. Kuralbayeva, Karlygash, 2013. "Optimal fiscal policy and different degrees of access to international capital markets," Journal of Development Economics, Elsevier, vol. 103(C), pages 336-352.
    4. Kono Daniel Y., 2011. "Insuring Free Trade: Unemployment Insurance and Trade Policy," Business and Politics, De Gruyter, vol. 13(3), pages 1-31, October.
    5. Maria Petrova & Robert H. Bates, 2012. "Evolution of Risk and Political Regimes," Economics and Politics, Wiley Blackwell, vol. 24(2), pages 200-225, July.
    6. Jeffrey G. Williamson, 2003. "Was It Stolper-Samuelson, Infant Industry or Something Else? World Trade Tariffs 1789-1938," NBER Working Papers 9656, National Bureau of Economic Research, Inc.
    7. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    8. David H. Clark, 2001. "Trading Butter for Guns," Journal of Conflict Resolution, Peace Science Society (International), vol. 45(5), pages 636-660, October.
    9. Barney Warf & James Randall, 1994. "The U.S.-Canada Free Trade Agreement: Impacts on U.S. States and Canadian Provinces," International Regional Science Review, , vol. 17(1), pages 99-119, April.
    10. Shuhao Zhao & Tianao Chang & Yumo Ni & Ping Zhou, 2023. "An Empirical Study of Trade in Goods between China and Brazil: Analysis of Competitiveness and Complementarity," Economies, MDPI, vol. 11(9), pages 1-16, September.
    11. Federico Podestà, 2016. "Do Big Governments Promote Trade Liberalization? A Long-Term Analysis of 18 OECD Countries, 1975-2000," FBK-IRVAPP Working Papers 2016-02, Research Institute for the Evaluation of Public Policies (IRVAPP), Bruno Kessler Foundation.
    12. María Franco Chuaire & Carlos Scartascini & Mariano Tommasi, 2017. "State capacity and the quality of policies. Revisiting the relationship between openness and government size," Economics and Politics, Wiley Blackwell, vol. 29(2), pages 133-156, July.
    13. Ricardo Hausmann & Michael Gavin, 1996. "Asegurar la estabilidad y el crecimiento en una región propensa a las sacudidas: los retos de políticas para América Latina," Research Department Publications 4021, Inter-American Development Bank, Research Department.
    14. Kueh, Jerome Swee-Hui & Puah, Chin-Hong & Wong, Chiew-Meu, 2008. "Bounds Estimation for Trade Openness and Government Expenditure Nexus of ASEAN-4 Countries," MPRA Paper 12351, University Library of Munich, Germany.
    15. Maria Franco & Carlos Scartascini & Mariano Tommasi, 2014. "State Capacity and the Quality of Policies: Revisiting the Relationship between Openness and the Size of Government," IDB Publications (Working Papers) 86254, Inter-American Development Bank.
    16. Garen, John & Trask, Kathleen, 2005. "Do more open economies have bigger governments? Another look," Journal of Development Economics, Elsevier, vol. 77(2), pages 533-551, August.

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