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?