المستودع الأكاديمي جامعة المدينة

Institutions and development : the interaction between trade regime and political system

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dc.creator Falkinger, Josef
dc.creator Grossmann, Volker
dc.date 2004
dc.date.accessioned 2013-10-16T07:01:55Z
dc.date.available 2013-10-16T07:01:55Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18917
dc.identifier ppn:470772239
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18917
dc.description This paper argues that openness to goods trade in combination with an unequal distribution of political power has been a major determinant of the comparatively slow development of resource- or land-abundant regions like South America and the Caribbean in the nineteenth century. We develop a two-sector general equilibrium model with a tax-financed public sector, and show that in a feudal society (dominated by landed elites) productivity-enhancing public investments like the provision of schooling are typically lower in an open than in a closed economy. Moreover, we find that, under openness to trade, development is faster in a democratic system. We also endogenize the trade regime and demonstrate that, in political equilibrium, a land-abundant and landowner-dominated economy supports openness to trade. Finally, we discuss empirical evidence which strongly supports our basic hypotheses.
dc.language eng
dc.publisher
dc.relation CESifo working papers 1279
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject O10
dc.subject N16
dc.subject N10
dc.subject F43
dc.subject H50
dc.subject ddc:330
dc.subject economic development
dc.subject institutions
dc.subject political system
dc.subject public education
dc.subject trade
dc.subject Entwicklung
dc.subject Politik der offenen Tür
dc.subject Außenwirtschaftspolitik
dc.subject Politisches System
dc.subject Theorie
dc.subject Welt
dc.title Institutions and development : the interaction between trade regime and political system
dc.type doc-type:workingPaper


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