Democracy and Trade—Evidence along the Distribution of Trading Activity

Astrid Krenz and Ana Lucia Abeliansky

No 8750, EcoMod2015 from EcoMod

Abstract: This paper analyzes the impact of democracy on trade along the distribution of countries' trading activity. We find a stronger relationship between democracy and trade at the lower quantiles of the trading activity, especially for the importing activity. Our results imply that the impact of democratization on trade is more important at a lower level of trading activity. Democratization's marginal benefit decreases over the distribution of the trading activity. We specially focus on a widely neglected issue in the literature: economies with higher trading activity are not necessarily the most democratic countries in the world. We find particular differences in the case of China, Malaysia, Mexico and Russia. Quantile regressions offer a powerful tool to detect these interdependencies. Using a conditional mean estimation methodology only leads to the wrong conclusion that the relationship between democracy and trade remains the same across the distribution of the trading activity and across different countries. See above See above

Keywords: NA; Trade and regional integration; Trade and regional integration (search for similar items in EconPapers)
Date: 2015-07-01
New Economics Papers: this item is included in nep-cis, nep-int, nep-pol and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ecomod.net/system/files/Democracy%20and%20Trade_version2.pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://ecomod.net/system/files/Democracy%20and%20Trade_version2.pdf [301 Moved Permanently]--> https://ecomod.net/system/files/Democracy%20and%20Trade_version2.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekd:008007:8750

Access Statistics for this paper

More papers in EcoMod2015 from EcoMod Contact information at EDIRC.
Bibliographic data for series maintained by Theresa Leary ().