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Trade, societal interests, and political parties

Published online by Cambridge University Press:  20 January 2017

Wonjae Hwang  and
Ian Down
Ian Down
Affiliation:
University of Tennessee, Knoxville, TN, USA
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Abstract

We argue that international trade affects party systems but that this impact is conditioned on the types of societal interests trade brings about. When factor mobility is high, trade promotes class-based grievances that are unlikely to affect the structure of the party system. However, when factor mobility is low, trade will increase the diversity of group interests and policy preferences, thereby pressuring structural change in the party system. A consequence is an increase in the effective number of political parties. The empirical analysis supports these expectations. This paper contributes to our understanding of the political impact of economic liberalization on representative democracy.

Type
Research Articles
Information
Business and Politics , Volume 16 , Issue 2 , August 2014 , pp. 313 - 338
Copyright
Copyright © V.K. Aggarwal 2014 and published under exclusive license to Cambridge University Press 

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