Wednesday, October 13, 2010: 11:55 AM
This paper studies how trade protection varies with the mechanism used to elect the legislature. In particular, we study how trade policy differs between countries with legislatures elected by a plurality election rule in single member constituencies and legislatures elected by a proportional, or party-list, rule. Our results, which are in line with the existing literature, show that countries with list-PR systems tend to have lower trade barriers than countries with majoritarian systems. Our paper expands on this literature by looking at the difference between countries with open-list rules and countries with closed-list rules. Our findings indicate that constituency size matters more than party-strength or country size when explaining this result. We also test the robustness of these results by using recently developed trade restriction indexes as a dependent variable.