This paper is an empirical investigation on the relationship between trade globalization and political liberalization. The sample is based on 157 countries from years 1957-1998, taking into consideration many social, economic, environmental, geographical, and historical factors. From this, an augmented gravity equation is estimated and evidence is found to support the prediction that political liberalization could discourage trade and trade could foster democracy.
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Paper provided by EconWPA in its series International Trade with number
0511005.
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 P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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