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Do Autocratic States Trade Less?

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Author Info
Toke S. Aidt () (Faculty of Economics, University of Cambridge, Cambridge U.K)
Martin Gassebner () (Department of Management, Technology, and Economics, ETH Zurich)

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Abstract

The paper analyzes whether the political regime of a country influences 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 find that autocracies import substantially less than democ- racies, even after controlling for ocial trade policies. This finding is very stable and does not depend on a particular set-up or estimation technique

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Publisher Info
Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 07-175.

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Length: 31 pages
Date of creation: Sep 2007
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Handle: RePEc:kof:wpskof:07-175

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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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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. Fischer, Justina AV & Somogyi, Frank, 2009. "Globalization and Protection of Employment," MPRA Paper 17535, University Library of Munich, Germany. [Downloadable!]
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  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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