Article thumbnail

Do Autocratic States Trade Less?

By Toke S. Aidt and Martin Gassebner

Abstract

The paper analyzes whether the political regime of a country influences its involvement in international trade. Firstly, we develop a theoretical model that predicts that autocracies trade less than democracies. Secondly, we test the predictions of the model empirically using a panel of more than 130 countries for the years 1962 to 2000. In contrast to the existing literature, we use data on individual importing and exporting countries, rather than a dyadic set-up. In line with the model, we find that autocracies import substantially less than democ- racies, even after controlling for ocial trade policies. This finding is very stable and does not depend on a particular set-up or estimation techniqueinternational trade, democracy, autocracy, gravity model

OAI identifier:
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://www.kof.ethz.ch/publica... (external link)

  • To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

    Suggested articles