Party competition and the politics of economic openness and growth

Abstract. The political effects of economic openness have recently attracted considerable scholarly attention. This paper analyzes the relationships between openness of trade, party competition, and economic performance in 15 advanced Western democracies. Restraints on party competition are found to depend more on domestic social pluralism than on openness of trade. Economic growth is promoted both by economic exposure and by party-system competition. The results suggest that restraints on political competition may be less beneficial in party systems than in interest group systems.