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Do Autocratic States Trade Less?

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Author Info
Aidt, T.S.
Gassebner, M.

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Abstract

The paper analyzes whether the political regime of a country inuences its involvement in international trade. Firstly, we develop a theoretical model that predicts that autocracies trade less than democracies. Secondly, we test the predictions of the model empirically using a panel of more than 130 countries for the years 1962 to 2000. In contrast to the existing literature, we use data on individual importing and exporting countries, rather than a dyadic set-up. In line with the model, we and that autocracies import substantially less than democracies, even after controlling for official trade policies. This finding is very stable and does not depend on a particular set-up or estimation technique.

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File URL: http://www.econ.cam.ac.uk/dae/repec/cam/pdf/cwpe0742.pdf
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Publisher Info
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0742.

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Length: 24
Date of creation: Aug 2007
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Handle: RePEc:cam:camdae:0742

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Related research
Keywords: International trade; democracy; autocracy; gravity model.;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
P45 - Economic Systems - - Other Economic Systems - - - International Linkages
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Justina A.V. Fischer & Frank Somogyi, 2009. "Globalization and Protection of Employment," KOF Working papers 09-238, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
    Other versions:
  2. Selen Guerin & Stefano Manzocchi, 2009. "Political regime and FDI from advanced to emerging countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(1), pages 75-91, April. [Downloadable!] (restricted)
  3. Bjornskov, Christian & Fischer, Justina AV & Dreher, Axel, 2008. "Formal Institutions and Subjective Well-Being: Revisiting the Cross-Country Evidence," MPRA Paper 17159, University Library of Munich, Germany, revised Jul 2009. [Downloadable!]
    Other versions:
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