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Why Democracies Cooperate More: Electoral Control and International Trade Agreements

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Author Info
Edward D. Mansfield
Helen V. Milner
B. Peter Rosendorff

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Abstract

Over the past fifty years, barriers to international trade have decreased substantially. A key source of this decline in protectionism has been the proliferation of agreements among countries to liberalize commerce. In this article, we analyze the domestic political conditions under which states have concluded such agreements and, more generally, explore the factors affecting interstate economic cooperation. We argue that interstate cooperation on commer-cial issues depends heavily on the political regime types of participants: as states become more democratic, they are increasingly likely to conclude trade agreements. To test our claim, we examine whether the regime types of states have influenced their propensity to form and expand preferential trading arrangements (PTAs) during the period since World War II. We find that democratic countries are about twice as likely to form a PTA as autocratic countries, and that pairs of democracies are roughly four times as likely to do so as autocratic pairs. These results provide strong evidence that democracies are more commercially cooperative than less democratic countries. © 2001 The IO Foundation and the Massachusetts Institute of Technology

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Publisher Info
Article provided by MIT Press in its journal International Organization.

Volume (Year): 56 (2002)
Issue (Month): 3 (August)
Pages: 477-513
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Handle: RePEc:tpr:intorg:v:56:y:2002:i:3:p:477-513

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  1. Witold J. Henisz & Edward D. Mansfield, 2004. "Votes and Vetoes: The Political Determinants of Commercial Openness," William Davidson Institute Working Papers Series 2004-712, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. Kishore Gawande & Pravin Krishna & Marcelo Olarreaga, 2009. "What Governments Maximize and Why: The View from Trade," NBER Working Papers 14953, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Scott L. Baier & Jeffrey H. Bergstrand, 2005. "Do free trade agreements actually increase members’ international trade?," Working Paper 2005-03, Federal Reserve Bank of Atlanta. [Downloadable!]
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  4. Adam, Antonis & Delis, Manthos D & Kammas, Pantelis, 2009. "Are democratic governments more efficient?," MPRA Paper 15843, University Library of Munich, Germany. [Downloadable!]
  5. Jessica Decker & Jamus Lim, 2009. "Democracy and trade: an empirical study," Economics of Governance, Springer, vol. 10(2), pages 165-186, April. [Downloadable!] (restricted)
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  6. Frieden Jeffry A., 2008. "Global Governance of Global Monetary Relations: Rationale and Feasibility," Economics Discussion Papers 2008-32, Kiel Institute for the World Economy. [Downloadable!]
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  7. Vincent Vicard, 2006. "Trade, Conflicts, and Political Integration: the Regional Interplays," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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