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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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    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

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    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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