Régime politique et ouverture commerciale

Gislain Stéphane Gandjon Fankem

Revue d'économie politique, 2017, vol. 127, issue 3, 423-454

Abstract: In this paper, we study the effect of low level of democracy on trade openness degree starting from a sample limited to the developing countries. We use the original measure of trade openness recently built by Squalli and Wilson [2011]. This measure reflects trade outcome reality by capturing two dimensions that together describe trade openness precisely. The estimates are carried out by the two-step system Generalized Method of Moments (GMM) with robust standard errors corrected for finite samples using Windmeijer?s [2005] correction procedure. Over the period 1995-2010, our results show that openness is a decreasing function of the level of democracy. What seems to suggest that democratization process engaged in the developing countries during the years 1990 did not make it possible yet to accelerate their trade openness.

Keywords: political regime; trade openness; dynamic panel data; developing countries (search for similar items in EconPapers)
Date: 2017
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