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Trade, Inequality, and the Political Economy of Institutions

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dc.contributor.authorDo, Quy-Toan
dc.contributor.authorLevchenko, Andrei A.
dc.date.accessioned2012-03-30T07:33:57Z
dc.date.available2012-03-30T07:33:57Z
dc.date.issued2009
dc.description.abstractThis paper investigates the relationship between international trade and the quality of economic institutions. We model institutions as fixed costs of entry, in a framework that has two key features. First, preferences over entry costs differ across firms and depend on firm size. Larger firms prefer to set higher costs of entry, in order to reduce competition. Second, these costs are endogenously determined in a political economy equilibrium. Trade opening can lead to higher entry costs when it changes the political power in favor of a small elite of large exporters, who in turn prefer to install high entry barriers.en
dc.identifier.citationJournal of Economic Theory
dc.identifier.issn00220531
dc.identifier.urihttps://hdl.handle.net/10986/5668
dc.language.isoEN
dc.relation.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.rights.holderWorld Bank
dc.subjectInstitutions: Design, Formation, and Operations D020
dc.subjectModels of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior D720
dc.subjectNeoclassical Models of Trade F110
dc.subjectTrade Policy
dc.subjectInternational Trade Organizations F130
dc.subjectProduction, Pricing, and Market Structure
dc.subjectSize Distribution of Firms L110
dc.titleTrade, Inequality, and the Political Economy of Institutionsen
dc.title.alternativeJournal of Economic Theoryen
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.doctypeJournal Article
okr.externalcontentExternal Content
okr.identifier.externaldocumentum611
okr.journal.nbpages1489-1520
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.relation.associatedurlhttp://dx.doi.org/10.1016/j.jet.2008.11.007
okr.relation.associatedurlhttp://search.ebscohost.com/login.aspx?direct=true&db=eoh&AN=1058665&site=ehost-live
okr.relation.associatedurlhttp://www.sciencedirect.com/science/journal/00220531
okr.volume144
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