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Why Trading with Dictators May Nevertheless Help the People: On the Interplay between Trade, Political Regimes and Economic Institutions

Khalid, Usman LU (2015) In Working Paper / Department of Economics, School of Economics and Management, Lund University
Abstract
Recent empirical studies confirm a positive relationship between trade liberalization or trade openness and the quality of domestic economic institutions. An isolated analysis of trade openness per se, however, may grossly simplify the mechanisms at work, as the linkage between open trade and quality of economic institutions is likely to vary for different political regimes. This study examines the causal relationship between trade openness and quality of economic institutions under different political institutions. We find that in the presence of extractive political institutions, the effect of trade openness on economic institutions is reduced significantly.
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
trade openness, political institutions, economic institutions, institutional change
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
issue
15
pages
36 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
3270c7ea-d32d-40c3-87d2-5e434bc4c4b1 (old id 5365386)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2015_015.htm
date added to LUP
2015-05-05 10:10:08
date last changed
2016-04-16 07:56:19
@misc{3270c7ea-d32d-40c3-87d2-5e434bc4c4b1,
  abstract     = {Recent empirical studies confirm a positive relationship between trade liberalization or trade openness and the quality of domestic economic institutions. An isolated analysis of trade openness per se, however, may grossly simplify the mechanisms at work, as the linkage between open trade and quality of economic institutions is likely to vary for different political regimes. This study examines the causal relationship between trade openness and quality of economic institutions under different political institutions. We find that in the presence of extractive political institutions, the effect of trade openness on economic institutions is reduced significantly.},
  author       = {Khalid, Usman},
  keyword      = {trade openness,political institutions,economic institutions,institutional change},
  language     = {eng},
  number       = {15},
  pages        = {36},
  publisher    = {ARRAY(0xac8b308)},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {Why Trading with Dictators May Nevertheless Help the People: On the Interplay between Trade, Political Regimes and Economic Institutions},
  year         = {2015},
}