Replication data for: Free Trade Agreements and the Consolidation of Democracy

Principal Investigator(s): View help for Principal Investigator(s) Xuepeng Liu; Emanuel Ornelas

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AEJMacro-2012-0273_data			10/12/2019 10:00:PM
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Project Citation:

Liu, Xuepeng, and Ornelas, Emanuel. Replication data for: Free Trade Agreements and the Consolidation of Democracy. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114296V1

Project Description

Summary: We study the relationship between participation in free trade agreements (FTAs) and the sustainability of democracy. Our model shows that FTAs can critically reduce the incentive of authoritarian groups to seek power by destroying protectionist rents, thus making democracies last longer. This gives governments in unstable democracies an extra motive to form FTAs. Hence, greater democratic instability induces governments to boost their FTA commitments. In a dataset with 116 countries over 1960-2007, we find robust support for these predictions. They help to rationalize the rapid simultaneous growth of regionalism and of worldwide democratization since the late 1980s.

Scope of Project

JEL Classification:
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      F13 Trade Policy; International Trade Organizations
      F15 Economic Integration
      O19 International Linkages to Development; Role of International Organizations
      O24 Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy

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Published Versions

V1 [2019-10-12]

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