Democracy and Trade: An Empirical Study

The theoretical discussion on globalization has suggested that there are linkages between democracy and trade, although the direction of influence is less certain. Formal empirical studies remain scarce, and have often focused on the question of whether democratic regimes influence trade policy, as...

Full description

Bibliographic Details
Main Authors:	Decker, Jessica Henson, Lim, Jamus Jerome
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Trade Policy International Trade Organizations F130 Comparative Analysis of Economic Systems P510
Online Access:	http://hdl.handle.net/10986/5606

id	okr-10986-5606
recordtype	oai_dc
spelling	okr-10986-56062021-04-23T14:02:23Z Democracy and Trade: An Empirical Study Decker, Jessica Henson Lim, Jamus Jerome Trade Policy International Trade Organizations F130 Comparative Analysis of Economic Systems P510 The theoretical discussion on globalization has suggested that there are linkages between democracy and trade, although the direction of influence is less certain. Formal empirical studies remain scarce, and have often focused on the question of whether democratic regimes influence trade policy, as opposed to the actual relationship between democracy and trade. This paper seeks to answer the question, "Do democracies trade more?" by applying the gravity equation to a large dataset of bilateral trade data for the period 1948-1999, while taking into account the role of democracy. It finds that democracy is positively related to trade flows, but only after controlling for trade pair heterogeneity. In addition, it makes the case for studies of this nature to draw a distinction between trade flows in the pre- and post-1990s period of rapid democratization as well as between developed and developing countries. 2012-03-30T07:33:38Z 2012-03-30T07:33:38Z 2009 Journal Article Economics of Governance 14356104 http://hdl.handle.net/10986/5606 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Trade Policy International Trade Organizations F130 Comparative Analysis of Economic Systems P510
spellingShingle	Trade Policy International Trade Organizations F130 Comparative Analysis of Economic Systems P510 Decker, Jessica Henson Lim, Jamus Jerome Democracy and Trade: An Empirical Study
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The theoretical discussion on globalization has suggested that there are linkages between democracy and trade, although the direction of influence is less certain. Formal empirical studies remain scarce, and have often focused on the question of whether democratic regimes influence trade policy, as opposed to the actual relationship between democracy and trade. This paper seeks to answer the question, "Do democracies trade more?" by applying the gravity equation to a large dataset of bilateral trade data for the period 1948-1999, while taking into account the role of democracy. It finds that democracy is positively related to trade flows, but only after controlling for trade pair heterogeneity. In addition, it makes the case for studies of this nature to draw a distinction between trade flows in the pre- and post-1990s period of rapid democratization as well as between developed and developing countries.
format	Journal Article
author	Decker, Jessica Henson Lim, Jamus Jerome
author_facet	Decker, Jessica Henson Lim, Jamus Jerome
author_sort	Decker, Jessica Henson
title	Democracy and Trade: An Empirical Study
title_short	Democracy and Trade: An Empirical Study
title_full	Democracy and Trade: An Empirical Study
title_fullStr	Democracy and Trade: An Empirical Study
title_full_unstemmed	Democracy and Trade: An Empirical Study
title_sort	democracy and trade: an empirical study
publishDate	2012
url	http://hdl.handle.net/10986/5606
_version_	1764395649816592384

Democracy and Trade: An Empirical Study

Similar Items