IDEAS home Printed from
   My bibliography  Save this article

Commerce et préférences.. Les effets d'une clause démocratique


  • Cindy Duc
  • Clotilde Granger
  • Jean-Marc Siroën


For several years, preferential trade agreements have been oriented towards initiating a deep integration process including a “democratic” clause. We can consider the inclusion of such a clause as a political choice to promote democracy. However, it can also be viewed as a pre-condition for implementing an institutional “deep integration” process, which might also raise new costs impeding trade. The aim of this paper is to verify that preferential trade agreements (ptas) have a higher positive effect on trade inside the area when they are bound by a democratic constraint. To achieve this, we use an Anderson and van Wincoop [2003] type of gravity model, and we differentiate between ptas according to whether they include a democratic clause or not. Empirical evidence shows that the inclusion of a democratic clause has a negative effect on bilateral trade so long as at least one northern country is concerned. Classification JEL : F13, F15, O19 ; P16

Suggested Citation

  • Cindy Duc & Clotilde Granger & Jean-Marc Siroën, 2007. "Commerce et préférences.. Les effets d'une clause démocratique," Revue économique, Presses de Sciences-Po, vol. 58(5), pages 1055-1076.
  • Handle: RePEc:cai:recosp:reco_585_1055

    Download full text from publisher

    File URL:
    Download Restriction: free

    File URL:
    Download Restriction: free

    References listed on IDEAS

    1. Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, vol. 79(4), pages 655-673, September.
    2. repec:spo:wpecon:info:hdl:2441/1423 is not listed on IDEAS
    3. Jérôme Creel & Henri Sterdyniak, 2001. "La théorie budgétaire du niveau des prix, un bilan critique," Revue d'économie politique, Dalloz, vol. 111(6), pages 909-939.
    4. Matthew B. Canzoneri & Robert E. Cumby & Behzad T. Diba, 2001. "Is the Price Level Determined by the Needs of Fiscal Solvency?," American Economic Review, American Economic Association, vol. 91(5), pages 1221-1238, December.
    5. Jérôme Creel & Henri Sterdyniak, 2002. "The fiscal theory of the price level and sluggish inflation: how important shall the wealth effect be?," Working Papers hal-00972779, HAL.
    6. Michael Woodford, 1998. "Doing Without Money: Controlling Inflation in a Post-Monetary World," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 173-219, January.
    7. Jérôme Creel & Henri Sterdyniak, 1995. "Les déficits publics en Europe : causes, conséquences ou remèdes à la crise ?," Revue de l'OFCE, Programme National Persée, vol. 54(1), pages 57-100.
    8. Hamilton, James D & Flavin, Marjorie A, 1986. "On the Limitations of Government Borrowing: A Framework for EmpiricalTesting," American Economic Review, American Economic Association, vol. 76(4), pages 808-819, September.
    9. Creel, Jerome & Bihan, Herve Le, 2006. "Using structural balance data to test the fiscal theory of the price level: Some international evidence," Journal of Macroeconomics, Elsevier, vol. 28(2), pages 338-360, June.
    10. repec:spo:wpecon:info:hdl:2441/2525 is not listed on IDEAS
    11. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1329-1368.
    12. repec:dau:papers:123456789/3304 is not listed on IDEAS
    13. Woodford, Michael, 1995. "Price-level determinacy without control of a monetary aggregate," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 43(1), pages 1-46, December.
    14. Michael Woodford, 1996. "Control of the Public Debt: A Requirement for Price Stability?," NBER Working Papers 5684, National Bureau of Economic Research, Inc.
    15. Leith, Campbell & Wren-Lewis, Simon, 2000. "Interactions between Monetary and Fiscal Policy Rules," Economic Journal, Royal Economic Society, vol. 110(462), pages 93-108, March.
    16. Lawrence J. Christiano & Terry J. Fitzgerald, 2000. "Understanding the fiscal theory of the price level," Economic Review, Federal Reserve Bank of Cleveland, issue Q II, pages 2-38.
    17. repec:spo:wpecon:info:hdl:2441/2972 is not listed on IDEAS
    18. Olivier Biau & Élie Girard, 2005. "Politique budgétaire et dynamique économique en France : l'approche VAR structurel," Economie & Prévision, La Documentation Française, vol. 0(3), pages 1-23.
    19. Elie Girard & Olivier Biau, 2005. "Politique budgétaire et dynamique économique en France : l'approche VAR structurel," Économie et Prévision, Programme National Persée, vol. 169(3), pages 1-23.
    20. Jerome Creel & Paola Monperrus-Veroni & Francesco Saraceno, 2005. "Discretionary Policy Interactions and the Fiscal Theory of the Price Level: A SVAR Analysis on French Data," Documents de Travail de l'OFCE 2005-12, Observatoire Francais des Conjonctures Economiques (OFCE).
    21. Leeper, Eric M., 1991. "Equilibria under 'active' and 'passive' monetary and fiscal policies," Journal of Monetary Economics, Elsevier, vol. 27(1), pages 129-147, February.
    22. Carl E. Walsh, 2003. "Monetary Theory and Policy, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232316, January.
    23. Thomas J. Sargent & Neil Wallace, 1981. "Some unpleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall.
    24. Roberto Perotti, 2005. "Estimating the effects of fiscal policy in OECD countries," Proceedings, Federal Reserve Bank of San Francisco.
    25. Olivier Biau & Élie Girard, 2005. "Politique budgétaire et dynamique économique en France. L'approche var structurel," Revue économique, Presses de Sciences-Po, vol. 56(3), pages 755-764.
    26. Rao Aiyagari, S. & Gertler, Mark, 1985. "The backing of government bonds and monetarism," Journal of Monetary Economics, Elsevier, vol. 16(1), pages 19-44, July.
    27. Calvo, Guillermo A., 1983. "Staggered prices in a utility-maximizing framework," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 383-398, September.
    28. Sims, Christopher A & Stock, James H & Watson, Mark W, 1990. "Inference in Linear Time Series Models with Some Unit Roots," Econometrica, Econometric Society, vol. 58(1), pages 113-144, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:recosp:reco_585_1055. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.