Skip to main content
Article
Does Initial Inequality Prevent Trade Development? A Political-Economy Approach
Trade and Development Review (2009)
  • Marcus Marktanner, American University of Beirut
  • Nagham Sayour, American University of Beirut
Abstract
We develop a model in which government maximizes political support subject to the redistributive nature of trade liberalization. The model predicts that initial inequality between labor and capital income is inversely related to government’s trade liberalization propensity. Empirically, we support this conclusion by showing that unequal countries have joined the General Agreement on Tariffs and Trade later than equal countries.
Publication Date
2009
Citation Information
Marcus Marktanner and Nagham Sayour. "Does Initial Inequality Prevent Trade Development? A Political-Economy Approach" Trade and Development Review Vol. 2 Iss. 2 (2009)
Available at: http://works.bepress.com/marcus_marktanner/13/