Democracy, autocracy, and the regulation of international trade in developing countries

This paper investigates into the political determinants of trade policy regulation in developing countries. When choosing between the trade policy instruments tariffs and quota governments consider the effects of these policies on their political support from interest groups and voters. It is argued that quantitative restrictions become increasingly less attractive as a country democratizes. Instead, motives of revenue generation gain importance. Therefore, the likelihood of democratic governments choosing quota is smaller than for their autocratic counterparts. Empirical tests based on a sample of 75 developing countries for the years 1979-1998 support the hypothesis.