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Democracy and trade conflict

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  • Richard Sherman

Abstract

The record of formal disputes in the General Agreement on Tariffs and Trade (GATT) is largely one of conflict among democracies. I develop a theoretical argument to explain the prevalence of democratic states in the GATT's dispute process. Democracies face stronger pressures to initiate disputes; they are more attractive as dispute targets due to the political influence enjoyed by interest groups; they share norms of juridical dispute resolution; and they are more likely to uphold their policy commitments than nondemocracies. I develop an empirical model of the incidence of disputes among GATT members, finding that democracies are more likely to participate in disputes than nondemocratic states. I also find that democratic dyads are more likely to resolve their disputes cooperatively.

Suggested Citation

  • Richard Sherman, 1999. "Democracy and trade conflict," International Interactions, Taylor & Francis Journals, vol. 27(1), pages 1-28, November.
    • Handle: RePEc:taf:ginixx:v:27:y:1999:i:1:p:1-28
    DOI: 10.1080/03050620108434975
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    References listed on IDEAS

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    1. Kimberly Ann Elliott & Thomas O. Bayard, 1994. "Reciprocity and Retaliation in U.S. Trade Policy," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 78, April.
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    Cited by:

    1. Marc L. Busch, 2000. "Democracy, Consultation, and the Paneling of Disputes under GATT," Journal of Conflict Resolution, Peace Science Society (International), vol. 44(4), pages 425-446, August.

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