Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20506 
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dc.contributor.authorFalkinger, Josefen
dc.contributor.authorGrossmann, Volkeren
dc.date.accessioned2009-01-28T16:14:37Z-
dc.date.available2009-01-28T16:14:37Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/20506-
dc.description.abstractThis paper argues that openness to goods trade in combination with an unequal distributionof political power has been a major determinant of the comparatively slow development ofresource- or land-abundant regions like South America and the Caribbean in the nineteenthcentury. We develop a two-sector general equilibrium model with a tax-financed publicsector, and show that in a feudal society (dominated by landed elites) productivity-enhancingpublic investments like the provision of schooling are typically lower in an open than in aclosed economy. Moreover, we find that, under openness to trade, development is faster in ademocratic system. We also endogenize the trade regime and demonstrate that, in politicalequilibrium, a land-abundant and landowner dominated economy supports openness totrade. Finally, we discuss empirical evidence which strongly supports our basic hypotheses.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x1242en
dc.subject.jelH50en
dc.subject.jelF43en
dc.subject.jelN10en
dc.subject.jelO10en
dc.subject.jelN16en
dc.subject.ddc330en
dc.subject.keywordeconomic developmenten
dc.subject.keywordinstitutionsen
dc.subject.keywordpolitical systemen
dc.subject.keywordpublic educationen
dc.subject.keywordtradeen
dc.subject.stwEntwicklungen
dc.subject.stwPolitik der offenen Türen
dc.subject.stwAussenwirtschaftspolitiken
dc.subject.stwPolitisches Systemen
dc.subject.stwTheorieen
dc.subject.stwWelten
dc.titleInstitutions and Development : The Interaction between Trade Regime and Political System-
dc.typeWorking Paperen
dc.identifier.ppn393557677en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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