Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/140756
Authors: 
Yu, Miaojie
Year of Publication: 
2007
Series/Report no.: 
TIGER Working Paper Series 104
Abstract: 
The literature has paid very little attention to a potential positive endogenous nexus between trade globalization and political liberalization. In this paper, I apply a structural approach to investigate two-way causality between the two based on the gravity trade theory, using data from a sample of 134 IMF countries over the pe- riod 1974-1998. An extensive search shows that trade globalization dampens political liberalization, though political liberalization fosters trade globalization. The paper also presents ample evidence of simultaneous bias when such bidirectional causality is ignored. Finally, it contains a thorough exploration of parameter heterogeneity by income and by region.
Subjects: 
Trade
Democracy
Gravity Equation
JEL: 
F13
P16
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.