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January 28, 2010 | History

Trade, inequality, and the political economy of institutions 1 edition

Trade, inequality, and the political economy of institutions
Quý Toàn Đõ̂

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Trade, inequality, and the political economy of institutions
prepared by Quy-Toan Do and Andrei A. Levchenko.

Published 2006 by International Monetary Fund, Research Dept. in [Washington, D.C.] .
Written in English.

About the Book

We analyze the relationship between international trade and the quality of economic institutions, such as contract enforcement, rule of law, and property rights. In our model, firms differ in their preferences for institutional quality, which is determined endogenously in a political economy framework. We show that trade opening can worsen institutions when it increases the political power of a small elite of large exporters who prefer to maintain bad institutions. The detrimental effect of trade on institutions is most likely to occur when a small country captures a sufficiently large share of world exports in sectors characterized by economic profits.

Edition Notes

"February 2006."

Includes bibliographical references (p. 50-52).

Also available on the World Wide Web.

IMF working paper -- WP/06/56

The Physical Object

52 p. :
Number of pages

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