Autocracy, democracy and trade policy
          
                  Sebastian Galiani and Gustavo Torrens
      
  
, 
            1
      (    
                  93
      
  
)
            Journal of International Economics
      
            173-193
      
            May
      
            2014
      
            05.31AE.pdf471.97 KB
          
                          
      
  
  Abstract
              We study democratization, coups and trade policy determination in an environment marked by intra-elite conáict over trade policy by taking a simple general equilibrium model of an open economy and combining it with the Acemoglu-Robinson model of democratization. Unlike the approaches taken in the previous literature, we study the simultaneous determination of trade policy and the political regime. Introducing a politically determined trade policy not only a§ects the equilibrium trade policy but also ináuences the nature of the political regime.
