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How and Why Dictators Forestall Democratization Using International Trade Policy

Author

Listed:
  • Kishore Gawande

    (Department of Business, Government and Society, University of Texas, Austin)

  • Ben Zissimos

    (Department of Economics, University of Exeter)

Abstract

On 'how' dictatorships use international trade policy to forestall democratization, our theory endogenizes the threat of revolution in a dictatorship to a world food price shock. The dictatorship then aim to neutralize the threat and forestall democratization using trade taxes. On 'why', we show that if a dictatorship were to introduce domestic redistributive fiscal capacity, they would make it more difficult to forestall democratization, hence undermining their own rule. The data and econometric results show that dictatorships do indeed follow this logic, while liberal democracies behave differently. We also find 'partial democracies' behave like dictatorships and not like liberal democracies.

Suggested Citation

  • Kishore Gawande & Ben Zissimos, 2023. "How and Why Dictators Forestall Democratization Using International Trade Policy," Discussion Papers 2401, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:2401
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    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP2401.pdf
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    References listed on IDEAS

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    1. Kelly C. Bishop & Nicolai V. Kuminoff & H. Spencer Banzhaf & Kevin J. Boyle & Kathrine von Gravenitz & Jaren C. Pope & V. Kerry Smith & Christopher D. Timmins, 2020. "Best Practices for Using Hedonic Property Value Models to Measure Willingness to Pay for Environmental Quality," Review of Environmental Economics and Policy, University of Chicago Press, vol. 14(2), pages 260-281.
    2. Alecia Cassidy, 2023. "How Does Mandatory Energy Efficiency Disclosure Affect Housing Prices?," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 10(3), pages 655-686.
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    Cited by:

    1. Guimaraes, Bernardo & Sheedy, Kevin D., 2024. "Institutional specialization," Journal of International Economics, Elsevier, vol. 150(C).

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    More about this item

    Keywords

    dictatorship; political institutions; political survival; redistributive fiscal capacity; trade policy;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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