Do Autocratic States Trade Less?

Posted: 22 Feb 2010

See all articles by Toke Skovsgaard Aidt

Toke Skovsgaard Aidt

University of Cambridge - Faculty of Economics and Politics

Martin Gassebner

ETH Zurich - KOF Swiss Economic Institute; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 2 versions of this paper

Date Written: 2010

Abstract

Does the political regime of a country influence its involvement in international trade? A theoretical model that predicts that autocracies trade less than democracies is developed, and the predictions of the model are tested empirically using a panel of more than 130 countries for 1962-2000. In contrast to the existing literature, data on the regime type of individual countries are used rather than information about the congruence of the regime type of pairs of trading countries. In line with the model, autocracies are found to import substantially less than democracies, even after controlling for official trade policies. This finding is very stable and does not depend on a particular setup or estimation technique.

Keywords: F13, F14, O24, P45, P51

Suggested Citation

Aidt, Toke Skovsgaard and Gassebner, Martin, Do Autocratic States Trade Less? (2010). The World Bank Economic Review, Vol. 24, Issue 1, pp. 38-76, 2010. Available at SSRN: https://ssrn.com/abstract=1556153 or http://dx.doi.org/lhp022

Toke Skovsgaard Aidt (Contact Author)

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Martin Gassebner

ETH Zurich - KOF Swiss Economic Institute ( email )

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CESifo (Center for Economic Studies and Ifo Institute) ( email )

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