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Trade as a Collective Action Problem

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  • Namasaka, Martin

Abstract

This article concerns the question whether free trade can be seen as a collective action problem. More specifically, I investigate whether one key characteristic of collective action is present in the case of trade: a common interest. I argue that while states at an aggregate level might have such a common interest, this does not automatically mean that governments will advance this interest in practice. Whether they will depends on accountability mechanisms within the state. I will show that within various accountability systems, there are reasons why governments will not advance the aggregate state interest. This opens up the floor to a more power-driven perspective on trade. I will first elaborate briefly on how the theory of collective action can be applied to trade and why states should have a common interest in free trade. Secondly, I will investigate why democratic and autocratic regimes respectively, might not advance this common interest. This will lead to my argument of viewing trade from a power perspective.

Suggested Citation

  • Namasaka, Martin, 2015. "Trade as a Collective Action Problem," MPRA Paper 68146, University Library of Munich, Germany, revised 31 Dec 2015.
  • Handle: RePEc:pra:mprapa:68146
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    File URL: https://mpra.ub.uni-muenchen.de/68146/1/MPRA_paper_68146.pdf
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    References listed on IDEAS

    as
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    2. Rodrik, Dani, 1998. "Why Is Trade Reform So Difficult in Africa?," Journal of African Economies, Centre for the Study of African Economies, vol. 7(0), pages 43-69, June.
    3. Olson, Mancur, 1993. "Dictatorship, Democracy, and Development," American Political Science Review, Cambridge University Press, vol. 87(3), pages 567-576, September.
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    More about this item

    Keywords

    Regional Trade; Collective Action; Integration;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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