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Commercial Imperialism? Political Influence and Trade During the Cold War

Berger, Daniel and Easterly, William and Nunn, Nathan and Satyanath, Shanker (2013) 'Commercial Imperialism? Political Influence and Trade During the Cold War.' American Economic Review, 103 (2). pp. 863-896. ISSN 0002-8282

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Abstract

We provide evidence that increased political influence, arising from CIA interventions during the Cold War, was used to create a larger foreign market for American products. Following CIA interventions, imports from the US increased dramatically, while total exports to the US were unaffected. The surge in imports was concentrated in industries in which the US had a comparative disadvantage, not a comparative advantage. Our analysis is able to rule out decreased trade costs, changing political ideology, and an increase in US loans and grants as alternative explanations. We provide evidence that the increased imports arose through direct purchases of American products by foreign governments.

Item Type: Article
Subjects: J Political Science > JA Political science (General)
Divisions: Faculty of Social Sciences > Government, Department of
Depositing User: Jim Jamieson
Date Deposited: 26 Apr 2013 13:20
Last Modified: 16 Dec 2014 11:14
URI: http://repository.essex.ac.uk/id/eprint/6039

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