Comparative growth and comparative advantage: Tests of the effects of interest group behavior on foreign trade patterns

Abstract

The purpose of the present paper has been to examine one particular set of implications of the Olson theory: the effect on trade patterns of the accumulation of interest groups and organizational rigidities. The results of three different tests were consistent with the predictions of that theory. Given the types of tests employed, it is perhaps best to regard the present exercise as a partial test of the Olson hypothesis. As that hypothesis focuses on variables, such as class structure and interest group power, which are difficult to measure, there are inherent difficulties in formulating tests. In the present paper, a method was employed which obviated the need for measurement of those variables. This was perhaps necessary given the multi-country, economy-wide scope of the tests. One testing approach which would complement the method of this paper would be to narrow the scope of the tests but provide more detailed data on the formation of organizational rigidities. Thus, the present paper constitutes just one approach to the testing of the Olson hypothesis. The importance of that hypothesis and the supportive nature of the present results both argue that further testing should be conducted.