“PROTECTION FOR SALE” IN A DEVELOPING COUNTRY: DEMOCRACY VS. DICTATORSHIP

Devashish Mitra (), Dimitrios Thomakos and Mehmet Ulubasoglu

Chapter 9 in The Political Economy of Trade Policy:Theory, Evidence and Applications, 2016, pp 163-174 from World Scientific Publishing Co. Pte. Ltd.

Abstract: For a “genuine” small open economy that has experienced both dictatorship and democracy, we find support for the predictions of the Grossman-Helpman (1994) “Protection for Sale” model. In contrast to previous studies, we use various protection measures (including tariffs, the direct measure of the theoretical model) and perform both single-year and panel regressions. Using Turkish industry-level data, the government's weight on welfare is estimated to be much larger than that on contributions. More importantly, we find that this weight is generally higher for the democratic regime than for dictatorship.

Keywords: Political Economy; Protection; Trade Policy; Tariffs; Subsidies; Reciprocal Trade Liberalization; Unilateral Trade Liberalization; Unilateralism; Reciprocity; Lobbying; Median Voter Models (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Journal Article: "Protection For Sale" In A Developing Country: Democracy Vs. Dictatorship (2002)
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