| dc.creator |
Falkinger, Josef |
|
| dc.creator |
Grossmann, Volker |
|
| dc.date |
2004 |
|
| dc.date.accessioned |
2013-10-16T07:10:50Z |
|
| dc.date.available |
2013-10-16T07:10:50Z |
|
| dc.date.issued |
2013-10-16 |
|
| dc.identifier |
http://hdl.handle.net/10419/20506 |
|
| dc.identifier |
ppn:393557677 |
|
| dc.identifier.uri |
http://koha.mediu.edu.my:8181/xmlui/handle/10419/20506 |
|
| 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.relation |
IZA Discussion paper series 1242 |
|
| dc.rights |
http://www.econstor.eu/dspace/Nutzungsbedingungen |
|
| dc.subject |
H50 |
|
| dc.subject |
F43 |
|
| dc.subject |
N10 |
|
| dc.subject |
O10 |
|
| dc.subject |
N16 |
|
| 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 |
|