(Friday, 22nd May 2009)
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The Impact of (International) Trade on Institutions
Although institutions are highly persistent, market development and economic integration affect costs and feasibility of different domestic institutional arrangements and are likely to trigger institutional (and cultural) change. In this workshop we will explore this issue rising (and trying to answer) the following questions: Are institutions which were self-enforcing in closed economy sustainable after trade expansion? Does trade openness improve institutional quality? How do social preferences and institutions co-evolve as (international) trade expands? Does economic integration make cultural and institutional convergence more likely?
Bibliographical references :
Belloc, Marianna, Samuel Bowles. 2009. International Trade and the Persistence of Cultural-Institutional Diversity. Santa Fe Institute Working Paper No. 09-03-005
Francois, Patrick 2008. Norms and Institutions. Working paper
Levchenko, Andrei A. 2008. International Trade and Institutional Change. Research Seminar in International Economics Discussion Paper579, pp. 791-819