"Protection for sale" in a developing country: Democracy vs. dictatorship

Devashish Mitra, Dimitrios D. Thomakos, Mehmet A. Ulubaşoǧlu

Research output: Contribution to journalReview articlepeer-review

103 Scopus citations

Abstract

For a "genuine" small open economy that has experienced both dictatorship and democracy, we find support for the predictions of the Grossman-Helpman (1994) "Protection for Sale" model. In contrast to previous studies, we use various protection measures (including tariffs, the direct measure of the theoretical model) and perform both single-year and panel regressions. Using Turkish industry-level data, the government's weight on welfare is estimated to be much larger than that on contributions. More importantly, we find that this weight is generally higher for the democratic regime than for dictatorship.

Original languageEnglish (US)
Pages (from-to)497-508
Number of pages12
JournalReview of Economics and Statistics
Volume84
Issue number3
DOIs
StatePublished - Aug 2002

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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