Trade, inequality, and the political economy of institutions:
"The authors analyze the relationship between international trade and the quality of economic institutions such as contract enforcement, rule of law, or property rights. The literature on institutions has argued, both empirically and theoretically, that larger firms care less about good institu...
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
[Washington, D.C]
World Bank
[2006]
|
| Schriftenreihe: | Policy research working paper
3836 |
| Schlagworte: | |
| Online-Zugang: | BSB01 EUV01 HTW01 FHI01 IOS01 Volltext |
| Zusammenfassung: | "The authors analyze the relationship between international trade and the quality of economic institutions such as contract enforcement, rule of law, or property rights. The literature on institutions has argued, both empirically and theoretically, that larger firms care less about good institutions and that higher inequality leads to worse institutions. Recent literature on international trade enables the authors to analyze economies with heterogeneous firms, and argue that trade opening leads to a reallocation of production in which large firms grow larger, while small firms become smaller or disappear. Combining these two strands of literature, the authors build a model that has two key features. First, preferences over institutional quality differ across firms and depend on firm size. Second, institutional quality is endogenously determined in a political economy framework. They show that trade opening can worsen institutions when it increases the political power of a small elite of large exporters that 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. "--World Bank web site |
| Beschreibung: | Includes bibliographical references Title from PDF file as viewed on 2/7/2006 |
| Beschreibung: | 1 Online-Ressource |
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Datensatz im Suchindex
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| id | DE-604.BV049074788 |
| illustrated | Not Illustrated |
| index_date | 2024-07-03T22:27:47Z |
| indexdate | 2024-07-10T09:54:31Z |
| institution | BVB |
| language | English |
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| publisher | World Bank |
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| series2 | Policy research working paper |
| spelling | Do, Quy Toan Verfasser aut Trade, inequality, and the political economy of institutions Quy-Toan Do, Andrei A. Levchenko [Washington, D.C] World Bank [2006] 1 Online-Ressource txt rdacontent c rdamedia cr rdacarrier Policy research working paper 3836 Includes bibliographical references Title from PDF file as viewed on 2/7/2006 "The authors analyze the relationship between international trade and the quality of economic institutions such as contract enforcement, rule of law, or property rights. The literature on institutions has argued, both empirically and theoretically, that larger firms care less about good institutions and that higher inequality leads to worse institutions. Recent literature on international trade enables the authors to analyze economies with heterogeneous firms, and argue that trade opening leads to a reallocation of production in which large firms grow larger, while small firms become smaller or disappear. Combining these two strands of literature, the authors build a model that has two key features. First, preferences over institutional quality differ across firms and depend on firm size. Second, institutional quality is endogenously determined in a political economy framework. They show that trade opening can worsen institutions when it increases the political power of a small elite of large exporters that 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. "--World Bank web site Online-Ausg Also available in print Equality Income distribution International trade Levchenko, Andrei A. Sonstige oth World Bank Sonstige oth Do, Quy Toan Trade, inequality, and the political economy of institutions http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3836 Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Do, Quy Toan Trade, inequality, and the political economy of institutions Equality Income distribution International trade |
| title | Trade, inequality, and the political economy of institutions |
| title_auth | Trade, inequality, and the political economy of institutions |
| title_exact_search | Trade, inequality, and the political economy of institutions |
| title_exact_search_txtP | Trade, inequality, and the political economy of institutions |
| title_full | Trade, inequality, and the political economy of institutions Quy-Toan Do, Andrei A. Levchenko |
| title_fullStr | Trade, inequality, and the political economy of institutions Quy-Toan Do, Andrei A. Levchenko |
| title_full_unstemmed | Trade, inequality, and the political economy of institutions Quy-Toan Do, Andrei A. Levchenko |
| title_short | Trade, inequality, and the political economy of institutions |
| title_sort | trade inequality and the political economy of institutions |
| topic | Equality Income distribution International trade |
| topic_facet | Equality Income distribution International trade |
| url | http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3836 |
| work_keys_str_mv | AT doquytoan tradeinequalityandthepoliticaleconomyofinstitutions AT levchenkoandreia tradeinequalityandthepoliticaleconomyofinstitutions AT worldbank tradeinequalityandthepoliticaleconomyofinstitutions |