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dc.contributor.authorFalkinger, Josefen_US
dc.contributor.authorGrossmann, Volkeren_US
dc.date.accessioned2009-01-28T16:14:37Z-
dc.date.available2009-01-28T16:14:37Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/20506-
dc.description.abstractThis paper argues that openness to goods trade in combination with an unequal distribution of political power has been a major determinant of the comparatively slow development of resource- or land-abundant regions like South America and the Caribbean in the nineteenth century. We develop a two-sector general equilibrium model with a tax-financed public sector, and show that in a feudal society (dominated by landed elites) productivity-enhancing public investments like the provision of schooling are typically lower in an open than in a closed economy. Moreover, we find that, under openness to trade, development is faster in a democratic system. We also endogenize the trade regime and demonstrate that, in political equilibrium, a land-abundant and landowner dominated economy supports openness to trade. Finally, we discuss empirical evidence which strongly supports our basic hypotheses.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesIZA Discussion paper series 1242en_US
dc.subject.jelH50en_US
dc.subject.jelF43en_US
dc.subject.jelN10en_US
dc.subject.jelO10en_US
dc.subject.jelN16en_US
dc.subject.ddc330en_US
dc.subject.keywordeconomic developmenten_US
dc.subject.keywordinstitutionsen_US
dc.subject.keywordpolitical systemen_US
dc.subject.keywordpublic educationen_US
dc.subject.keywordtradeen_US
dc.subject.stwEntwicklungen_US
dc.subject.stwPolitik der offenen Türen_US
dc.subject.stwAussenwirtschaftspolitiken_US
dc.subject.stwPolitisches Systemen_US
dc.subject.stwTheorieen_US
dc.subject.stwWelten_US
dc.titleInstitutions and Development : The Interaction between Trade Regime and Political Systemen_US
dc.typeWorking Paperen_US
dc.identifier.ppn393557677en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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