Trade, factor proportions, and political rights

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

This paper uses aggregate data to test the implication that capital-poor individuals favor trade liberalization in poor (capital-scarce) countries and are against it in rich (labor-scarce) countries. Income per capita is used as a proxy for the country capital-labor ratio while political rights is used as a proxy for the capital-labor ratio of the median voter. We analyze the determinants of average tariff rates in a cross section of countries to find that they are negatively associated with both income per capita and political fights, while they are positively, significantly, and robustly associated with their interaction, corroborating our initial hypothesis.
Original languageEnglish
Pages (from-to)163-168
JournalReview of Economics and Statistics
Volume90
Issue number1
DOIs
Publication statusPublished - 1 Jan 2008

Keywords

  • TARIFF
  • POLICY
  • GROWTH

Fingerprint Dive into the research topics of 'Trade, factor proportions, and political rights'. Together they form a unique fingerprint.

Cite this