Rethinking coalition size and trade policies in authoritarian regimes: Are single-party dictatorships less protectionist?

Abstract

Recent studies find that single-party dictatorships are more open to trade due to their larger coalitions than other types of dictatorships. However, this line of research assumes that the preference for trade policies is homogeneous among members of the coalition. This assumption means existing studies fail to explain why single-party dictatorships have more dispersed and complex tariffs rates, an alternative form of protectionism. In this article, I argue that the heterogeneous preferences for free trade among social groups lead to tariff complexity under dictatorships with large coalitions. When dictators need to build larger coalitions, they do not need to exclude all special interest groups but to respond to heterogeneous demands of trade policies in a more selective way. Thus, politicians under single-party dictatorships are more likely to set ad hoc tariffs to favor different members in their coalitions, resulting in complex tariff schedules.