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Erratum to: Poor institutions as a comparative advantage

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  • Cortney Stephen Rodet

    (Ohio University)

Abstract

Classic theories of comparative advantage point to factor productivity and factor abundance as determinants of specialization and trade. Likewise, geography and topography can determine trade patterns. Institutions, however, are increasingly seen as important sources of comparative advantage. A global drug prohibition regime implies that institutional quality matters more than traditional sources in the drug trade. This paper theoretically models trade patterns of illicit goods and confirms the role of institutions empirically with respect to the drug trade. In particular, illicit enterprises gain force in countries where resources are scarce, drug enforcement is uncertain, and institutions are weak in absolute terms and relative to neighboring countries. I propose several policy alternatives that emphasize economic opportunity for the poor and institutional quality that complement drug prohibition.
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Suggested Citation

  • Cortney Stephen Rodet, 2017. "Erratum to: Poor institutions as a comparative advantage," Constitutional Political Economy, Springer, vol. 28(2), pages 193-194, June.
    • Handle: RePEc:kap:copoec:v:28:y:2017:i:2:d:10.1007_s10602-016-9229-3
    DOI: 10.1007/s10602-016-9229-3
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    Cited by:

    1. Robert Gmeiner, 2021. "International free riding on institutions," Economic Affairs, Wiley Blackwell, vol. 41(1), pages 123-140, February.
    2. Alexandre Bohas & Gilles Grolleau & Naoufel Mzoughi, 2024. "The advantages of being disadvantaged," Kyklos, Wiley Blackwell, vol. 77(3), pages 759-775, August.
    3. Óscar Afonso & Ana Rita Longras, 2022. "Corruption, institutional quality, and offshoring: How do they affect comparative advantage, inter‐country wage inequality, and economic growth?," Metroeconomica, Wiley Blackwell, vol. 73(4), pages 987-1020, November.

    More about this item

    JEL classification:

    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • H1 - Public Economics - - Structure and Scope of Government
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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