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Trade as a Collective Action Problem

Martin Namasaka

MPRA Paper from University Library of Munich, Germany

Abstract: This article concerns the question whether free trade can be seen as a collective action problem. More specifically, I investigate whether one key characteristic of collective action is present in the case of trade: a common interest. I argue that while states at an aggregate level might have such a common interest, this does not automatically mean that governments will advance this interest in practice. Whether they will depends on accountability mechanisms within the state. I will show that within various accountability systems, there are reasons why governments will not advance the aggregate state interest. This opens up the floor to a more power-driven perspective on trade. I will first elaborate briefly on how the theory of collective action can be applied to trade and why states should have a common interest in free trade. Secondly, I will investigate why democratic and autocratic regimes respectively, might not advance this common interest. This will lead to my argument of viewing trade from a power perspective.

Keywords: Regional Trade; Collective Action; Integration (search for similar items in EconPapers)
JEL-codes: D7 D78 F1 F13 F15 F16 O1 O19 (search for similar items in EconPapers)
Date: 2015-11-31, Revised 2015-12-31
New Economics Papers: this item is included in nep-int
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