Democracy and the Skill-Bias in Trade Policy in Developing Countries

Democracy and the Skill-Bias in Trade Policy in Developing Countries
Author: Helen V. Milner
Publisher:
Total Pages: 0
Release: 2013
Genre:
ISBN:

Download Democracy and the Skill-Bias in Trade Policy in Developing Countries Book in PDF, Epub and Kindle

A growing body of research suggests that democracy promotes trade liberalization in developing countries. We argue that democracy in developing countries generates a "skill bias" in trade policy where democratic incumbents have incentives to increase tariffs on high skilled goods but reduce trade barriers on low skilled goods. Our model analyzes how electoral competition and interest group politics in the Heckscher-Ohlin economy of a democratic developing country affects trade protection on low and high skilled goods. It predicts that electoral competition induces the government to reduce trade barriers for low skilled goods to maximize the utility of the abundant factor, namely the low skilled median voter, who optimally prefers a reduction in tariffs for low skilled goods. At the same time, electoral politics also engenders lobbying pressure and campaign contributions from the scarce factor in the polity - the owners of skill-intensive industries (the interest group) - who prefers more trade protection for high skilled goods. The government rationally responds to contributions and electoral dividends generated by protecting skill-intensive industries from import competition by increasing tariffs on high skilled goods. Empirical tests conducted on a novel disaggregated industry-level dataset of trade protection for 92 developing countries from 1978-2004 provides robust statistical support for our theoretical predictions.

Democracy and Trade Policy in Developing Countries

Democracy and Trade Policy in Developing Countries
Author: Helen V. Milner
Publisher:
Total Pages: 0
Release: 2013
Genre:
ISBN:

Download Democracy and Trade Policy in Developing Countries Book in PDF, Epub and Kindle

What explains the variation in trade policy among democracies in developing countries? Why have some liberalized trade more than others? We analyze the impact of political particularism - defined as the degree of party discipline and the incentives for politicians to cultivate a personal vote - on trade protection. We present theoretical results from a model of particularism and its effects on tariffs; we present quantitative evidence to test the model; and then we develop a case study of India to illuminate it. Our model analyzes how an increase in particularism (that is, a shift from a party-centered to a more candidate-centered system) interacts with the degree of inter-industry occupational mobility of labor and the asset-specificity of industries to influence trade policies in developing democracies. Our model suggests that an increase in particularism induces leaders from the ruling and opposition parties to shift trade policy in equilibrium to the median voter's optimal preference, who in a developing society is a worker; and this means a reduction in trade barriers when labor mobility is high. Our data strongly support this conclusion. Our case study of India shows how the dynamics of a party-centered system operate to maintain higher trade barriers.

Democracy and Trade Policy in Developing Countries

Democracy and Trade Policy in Developing Countries
Author: Bumba Mukherjee
Publisher: University of Chicago Press
Total Pages: 324
Release: 2016-06-17
Genre: Political Science
ISBN: 022635895X

Download Democracy and Trade Policy in Developing Countries Book in PDF, Epub and Kindle

Since the 1970s, two major trends have emerged among developing countries: the rise of new democracies and the rush to free trade. For some, the confluence of these events suggests that a free-market economy complements a fledgling democracy. Others argue that the two are inherently incompatible and that exposure to economic globalization actually jeopardizes new democracies. Which view is correct? Bumba Mukherjee argues that the reality of how democracy and trade policy unravel in developing countries is more nuanced than either account. Mukherjee offers the first comprehensive cross-national framework for identifying the specific economic conditions that influence trade policy in developing countries. Laying out the causes of variation in trade policy in four developing or recently developed countries—Brazil, India, Indonesia, and South Africa—he argues persuasively that changing political interactions among parties, party leaders, and the labor market are often key to trade policy outcome. For instance, if workers are in a position to benefit from opening up to trade, party leaders in turn support trade reforms by decreasing tariffs and other trade barriers. At a time when discussions about the stability of new democracies are at the forefront, Democracy and Trade Policy in Developing Countries provides invaluable insight into the conditions needed for a democracy to survive in the developing world in the context of globalization.

Opening Up By Cracking Down

Opening Up By Cracking Down
Author: Adam Dean
Publisher: Cambridge University Press
Total Pages: 201
Release: 2022-10-06
Genre: Political Science
ISBN: 1108478514

Download Opening Up By Cracking Down Book in PDF, Epub and Kindle

Details how democratic developing countries used labor repression to overcome labor union opposition to free trade.

Women and Trade

Women and Trade
Author: World Bank;World Trade Organization
Publisher: World Bank Publications
Total Pages: 270
Release: 2020-09-04
Genre: Business & Economics
ISBN: 1464815569

Download Women and Trade Book in PDF, Epub and Kindle

Trade can dramatically improve women’s lives, creating new jobs, enhancing consumer choices, and increasing women’s bargaining power in society. It can also lead to job losses and a concentration of work in low-skilled employment. Given the complexity and specificity of the relationship between trade and gender, it is essential to assess the potential impact of trade policy on both women and men and to develop appropriate, evidence-based policies to ensure that trade helps to enhance opportunities for all. Research on gender equality and trade has been constrained by limited data and a lack of understanding of the connections among the economic roles that women play as workers, consumers, and decision makers. Building on new analyses and new sex-disaggregated data, Women and Trade: The Role of Trade in Promoting Gender Equality aims to advance the understanding of the relationship between trade and gender equality and to identify a series of opportunities through which trade can improve the lives of women.

The Political Economy of Trade Policy

The Political Economy of Trade Policy
Author: Robert C. Feenstra
Publisher: MIT Press
Total Pages: 334
Release: 1996
Genre: Business & Economics
ISBN: 9780262061865

Download The Political Economy of Trade Policy Book in PDF, Epub and Kindle

This collection of papers by former students and colleagues celebrates the profound impact that Jagdish Bhagwati has had on the field of international economics over the past three decades. Bhagwati, who is the Arthur Lehman Professor of Economics at Columbia University, has made pathbreaking contributions to the theory of international trade and commercial policy, including immiserizing growth, domestic distortions, economic development, and political economy. His success and influence as a teacher and mentor is widely recognized among students at both MIT and Columbia, and as founder of the Journal of International Economics, he has encouraged research on many questions of theoretical and policy relevance. The political economy of trade policy, Bhagwati's most recent area of interest, is the theme of this collection which addresses salient topics including market distortions, income distribution, and the political process of policy-making. Sections and Contributors Market Distortions, T. N. Srinivasan. Paul A. Samuelson. Paul R. Krugman * Trade and Income Distribution, Douglas A. Irwin. Richard A. Brecher and Ehsan U. Choudri. Robert C. Feenstra and Gordon H. Hanson. Earl L. Grinols * Perspectives on Political Economy, Robert E. Baldwin. Peter Diamond * Models of Political Economy and Trade, Gene M. Grossman and Elhana Helpman. John Douglas Wilson. B. Peter Rosendorff. Arvind Panagariya and Ronald Findlay

The Politics of Trade and Industrial Policy in Africa

The Politics of Trade and Industrial Policy in Africa
Author: Charles Chukwuma Soludo
Publisher: IDRC
Total Pages: 376
Release: 2004
Genre: Africa
ISBN: 1592211658

Download The Politics of Trade and Industrial Policy in Africa Book in PDF, Epub and Kindle

This book maps the process and political economy of policy making in Africa. It's focus on trade and industrial policy makes it unique and it will appeal to students and academics in economics, political economy, political science and African studies. Detailed case studies help the reader to understand how the process and motivation behind policy decisions can vary from country to country depending on the form of government, ethnicity and nationality and other social factors.

The Oxford Handbook of the Political Economy of International Trade

The Oxford Handbook of the Political Economy of International Trade
Author: Lisa L. Martin
Publisher: Oxford University Press
Total Pages: 576
Release: 2015-04-23
Genre: Political Science
ISBN: 0190266961

Download The Oxford Handbook of the Political Economy of International Trade Book in PDF, Epub and Kindle

The Oxford Handbook of the Politics of International Trade surveys the literature on the politics of international trade and highlights the most exciting recent scholarly developments. It examines the impact of domestic societal actors, domestic institutions, and international interactions on trade policy and trade flows, as well as building on this basic analytical framework. Including contributions from prominent scholars around the globe, and from multiple theoretical and methodological traditions, the volume considers the development of concepts and policies about international trade; the influence of individuals, firms, and societies; the role of domestic and international institutions; and the interaction of trade and other issues, such as monetary policy, environmental challenges, and human rights. Showcasing both established theories and findings and cutting-edge new research, the Handbook is a valuable reference for scholars of political economy.

Global Trends 2040

Global Trends 2040
Author: National Intelligence Council
Publisher: Cosimo Reports
Total Pages: 158
Release: 2021-03
Genre:
ISBN: 9781646794973

Download Global Trends 2040 Book in PDF, Epub and Kindle

"The ongoing COVID-19 pandemic marks the most significant, singular global disruption since World War II, with health, economic, political, and security implications that will ripple for years to come." -Global Trends 2040 (2021) Global Trends 2040-A More Contested World (2021), released by the US National Intelligence Council, is the latest report in its series of reports starting in 1997 about megatrends and the world's future. This report, strongly influenced by the COVID-19 pandemic, paints a bleak picture of the future and describes a contested, fragmented and turbulent world. It specifically discusses the four main trends that will shape tomorrow's world: - Demographics-by 2040, 1.4 billion people will be added mostly in Africa and South Asia. - Economics-increased government debt and concentrated economic power will escalate problems for the poor and middleclass. - Climate-a hotter world will increase water, food, and health insecurity. - Technology-the emergence of new technologies could both solve and cause problems for human life. Students of trends, policymakers, entrepreneurs, academics, journalists and anyone eager for a glimpse into the next decades, will find this report, with colored graphs, essential reading.

The Globalization Paradox

The Globalization Paradox
Author: Dani Rodrik
Publisher: OUP Oxford
Total Pages: 442
Release: 2012-05-17
Genre: Political Science
ISBN: 0191634255

Download The Globalization Paradox Book in PDF, Epub and Kindle

For a century, economists have driven forward the cause of globalization in financial institutions, labour markets, and trade. Yet there have been consistent warning signs that a global economy and free trade might not always be advantageous. Where are the pressure points? What could be done about them? Dani Rodrik examines the back-story from its seventeenth-century origins through the milestones of the gold standard, the Bretton Woods Agreement, and the Washington Consensus, to the present day. Although economic globalization has enabled unprecedented levels of prosperity in advanced countries and has been a boon to hundreds of millions of poor workers in China and elsewhere in Asia, it is a concept that rests on shaky pillars, he contends. Its long-term sustainability is not a given. The heart of Rodrik’s argument is a fundamental 'trilemma': that we cannot simultaneously pursue democracy, national self-determination, and economic globalization. Give too much power to governments, and you have protectionism. Give markets too much freedom, and you have an unstable world economy with little social and political support from those it is supposed to help. Rodrik argues for smart globalization, not maximum globalization.