IDEAS home Printed from https://ideas.repec.org/a/bla/socsci/v101y2020i5p1834-1849.html
   My bibliography  Save this article

Preferential Trade Agreements, Democracy, and the Risk of Coups d’état

Author

Listed:
  • Wen‐Chin Wu
  • Fangjin Ye

Abstract

Objectives We seek to investigate the impact of preferential trade agreements (PTAs) on coups d’état. We argue that signing PTAs lowers the risk of coups because it acts as a credible commitment of signatory countries to pursuing long‐term economic benefits, which further reduces potential challengers’ incentives to initiate coups. In addition, the effect of PTAs is larger in democracies because democratic signatories are perceived to be more credible in upholding treaty commitments than their authoritarian counterparts. Methods We employ binary time‐series cross‐sectional (BTSCS) models to examine a sample of 154 countries between 1960 and 2012. Results We find that signing PTAs reduces risks of coups, especially in countries with higher levels of democratic development. Conclusions Our study sheds light on how PTAs can prolong leader survival through reducing the likelihood of coups and contributes to emerging studies on the consequences of signing PTAs in the age of economic globalization.

Suggested Citation

  • Wen‐Chin Wu & Fangjin Ye, 2020. "Preferential Trade Agreements, Democracy, and the Risk of Coups d’état," Social Science Quarterly, Southwestern Social Science Association, vol. 101(5), pages 1834-1849, September.
    • Handle: RePEc:bla:socsci:v:101:y:2020:i:5:p:1834-1849
    DOI: 10.1111/ssqu.12848
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ssqu.12848
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ssqu.12848?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xuepeng Liu & Emanuel Ornelas, 2014. "Free Trade Agreements and the Consolidation of Democracy," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(2), pages 29-70, April.
    2. Graeme B. Robertson & Emmanuel Teitelbaum, 2011. "Foreign Direct Investment, Regime Type, and Labor Protest in Developing Countries," American Journal of Political Science, John Wiley & Sons, vol. 55(3), pages 665-677, July.
    3. Adserà, Alícia & Boix, Carles, 2002. "Trade, Democracy, and the Size of the Public Sector: The Political Underpinnings of Openness," International Organization, Cambridge University Press, vol. 56(2), pages 229-262, April.
    4. Andreas Dür & Leonardo Baccini & Manfred Elsig, 2014. "The design of international trade agreements: Introducing a new dataset," The Review of International Organizations, Springer, vol. 9(3), pages 353-375, September.
    5. Baccini, Leonardo & Urpelainen, Johannes, 2014. "International institutions and domestic politics: can preferential trading agreements help leaders promote economic reform?," LSE Research Online Documents on Economics 55608, London School of Economics and Political Science, LSE Library.
    6. Hur, Jung & Park, Cheolbeom, 2012. "Do Free Trade Agreements Increase Economic Growth of the Member Countries?," World Development, Elsevier, vol. 40(7), pages 1283-1294.
    7. Dür, Andreas & Baccini, Leonardo & Elsig, Manfred, 2014. "The design of international trade agreements: introducing a new dataset," LSE Research Online Documents on Economics 59179, London School of Economics and Political Science, LSE Library.
    8. Baccini, Leonardo & Dür, Andreas & Elsig, Manfred, 2015. "The politics of trade agreement design: revisiting the depth-flexibility nexus," LSE Research Online Documents on Economics 62303, London School of Economics and Political Science, LSE Library.
    9. Baccini, Leonardo & Urpelainen, Johannes, 2012. "Strategic side payments: preferential trading agreements, economic reform, and foreign aid," LSE Research Online Documents on Economics 45057, London School of Economics and Political Science, LSE Library.
    10. Tim Büthe & Helen V. Milner, 2008. "The Politics of Foreign Direct Investment into Developing Countries: Increasing FDI through International Trade Agreements?," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 741-762, October.
    11. Baier, Scott L. & Bergstrand, Jeffrey H., 2007. "Do free trade agreements actually increase members' international trade?," Journal of International Economics, Elsevier, vol. 71(1), pages 72-95, March.
    12. Angela Joya, 2011. "The Egyptian revolution: crisis of neoliberalism and the potential for democratic politics," Review of African Political Economy, Taylor & Francis Journals, vol. 38(129), pages 367-386, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen Yue & Qingxia Lin & Siyu Xu, 2023. "Investment effect of regional trade agreements: an analysis from the perspective of heterogeneous agreement provisions," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    2. Kolcava, Dennis & Nguyen, Quynh & Bernauer, Thomas, 2019. "Does trade liberalization lead to environmental burden shifting in the global economy?," Ecological Economics, Elsevier, vol. 163(C), pages 98-112.
    3. Peter H. Egger & Filip Tarlea, 2021. "Comparing Apples to Apples: Estimating Consistent Partial Effects of Preferential Economic Integration Agreements," Economica, London School of Economics and Political Science, vol. 88(350), pages 456-473, April.
    4. Baccini, Leonardo & Dür, Andreas & Elsig, Manfred, 2015. "The politics of trade agreement design: revisiting the depth-flexibility nexus," LSE Research Online Documents on Economics 62303, London School of Economics and Political Science, LSE Library.
    5. Xing Yao & Yongzhong Zhang & Rizwana Yasmeen & Zhen Cai, 2021. "The impact of preferential trade agreements on bilateral trade: A structural gravity model analysis," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-20, March.
    6. Leonardo Baccini & Arianna Bondi & Matteo Fiorini, 2023. "Global Value Chains and the Design of Trade Agreements," RSCAS Working Papers 2013_56, European University Institute.
    7. Jappe Eckhardt & Hongyu Wang, 2021. "China's new generation trade agreements: Importing rules to lock in domestic reform?," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 581-597, July.
    8. Nuno Limão, 2016. "Preferential Trade Agreements," NBER Working Papers 22138, National Bureau of Economic Research, Inc.
    9. Soumyajit Mazumder, 2016. "Can I stay a BIT longer? The effect of bilateral investment treaties on political survival," The Review of International Organizations, Springer, vol. 11(4), pages 477-521, December.
    10. Jong Hee Park & Byung Koo Kim, 2020. "Why your neighbor matters: Positions in preferential trade agreement networks and export growth in global value chains," Economics and Politics, Wiley Blackwell, vol. 32(3), pages 381-410, November.
    11. Zarlasht Razeq, . "Deep trade integration and North-South participation in global value chains," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    12. Ka Zeng & Yue Lu & Ya‐wei Li, 2021. "Trade agreements and Global Value Chain (GVC) participation: Evidence from Chinese industries," Economics and Politics, Wiley Blackwell, vol. 33(3), pages 533-582, November.
    13. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    14. Mariam Camarero & Sergi Moliner & Cecilio Tamarit, 2021. "Is there a euro effect in the drivers of US FDI? New evidence using Bayesian model averaging techniques," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 881-926, November.
    15. Matteo Fiorini & Bernard Hoekman, 2020. "EU services trade liberalization and economic regulation: Complements or substitutes?," The Review of International Organizations, Springer, vol. 15(1), pages 247-270, January.
    16. Campi, Mercedes & Dueñas, Marco, 2019. "Intellectual property rights, trade agreements, and international trade," Research Policy, Elsevier, vol. 48(3), pages 531-545.
    17. Sébastien Miroudot & Davide Rigo, 2019. "Preferential Trade Agreements and Multinational Production," RSCAS Working Papers 2019/14, European University Institute.
    18. Katharina Längle, 2020. "Upgrading of Exports: Does the Integration into Trade Agreements Pave the Way to Product Upgrading?," Documents de travail du Centre d'Economie de la Sorbonne 20006, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    19. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).
    20. Julian Hinz, 2023. "The ties that bind: geopolitical motivations for economic integration," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(1), pages 51-100, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:socsci:v:101:y:2020:i:5:p:1834-1849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0038-4941 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.