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Democracy and Protectionism

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Author Info
O''Rourke, Kevin H
Taylor, Alan M

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Abstract

Does democracy encourage free trade? It depends. Broadening the franchise involves transferring power from non-elected elites to the wider population, most of whom will be workers. The Hecksher-Ohlin-Stolper-Samuelson logic says that democratization should lead to more liberal trade policies in countries where workers stand to gain from free trade; and to more protectionist policies in countries where workers will benefit from the imposition of tariffs and quotas. We test and confirm these political economy implications of trade theory hypothesis using data on democracy, factor endowments, and protection in the late nineteenth century.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5698.

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Date of creation: May 2006
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Handle: RePEc:cpr:ceprdp:5698

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Related research
Keywords: factor endowments Heckscher-Ohlin trade theory Stolper-Samuelson theorem tariffs

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Find related papers by JEL classification:
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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  1. Barry Eichengreen, 2006. "Democracy and Globalization," NBER Working Papers 12450, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Aidt, T.S. & Gassebner, M., 2007. "Do Autocratic States Trade Less?," Cambridge Working Papers in Economics 0742, Faculty of Economics, University of Cambridge. [Downloadable!]
    Other versions:
  3. Claudia M. Buch & Jörn Kleinert, 2007. "Multinational Firms and New Protectionisms," IAW Discussion Papers 33, Institut für Angewandte Wirtschaftsforschung (IAW). [Downloadable!]
  4. Aidt, T.S. & Jense , P.S., 2007. "Tax Structure, Size of Government, and the Extension of the Voting Franchise in Western Europe, 1860-1938," Cambridge Working Papers in Economics 0715, Faculty of Economics, University of Cambridge. [Downloadable!]
  5. Timothy J. Hatton & Jeffrey G. Williamson, 2006. "A Dual Policy Paradox: Why Have Trade and Immigration Policies Always Differed in Labor-Scarce Economies?," IZA Discussion Papers 2146, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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