Risk and trade regimes: another exploration

Author:

Bates Robert H.,Brock Philip,Tiefenthaler Jill

Abstract

An analysis of a small sample of countries shows that the higher the level of termsof-trade risk that a nation faces in international markets, the more likely it is to increase barriers. The analysis also shows that the greater the availability of social insurance programs mounted by a nation's government, the less likely it is to block free trade. In comparison with the small open economies of Western Europe, therefore, developing countries may remain protectionist because they lack the resources to mount internal programs of transfer payments as a means of coping with risk from international markets.

Publisher

Cambridge University Press (CUP)

Subject

Law,Organizational Behavior and Human Resource Management,Political Science and International Relations,Sociology and Political Science

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