Is trade a blessing or a curse? A panel data analysis of the determinants of depressive disorders.

Abstract

Given the speculation of the market economy causing an epidemic of depression, this study aimed to examine the influence of international trade on the prevalence of depressive disorders. We used panel data from 1993 to 2015 covering 170 countries (n = 3787) and applied fixed effects regression models. We modeled the prevalence of depressive disorders as a function of international trade, adjusting for economic development, economic growth, and population size. Regime types, media freedom, and capital-labor ratio were included as moderators. A 100% point increase in the value of international trade indicated a 0.09% point decrease in the prevalence of depressive disorders (- 0.09, confidence interval [CI] - 0.01 to - 0.18). However, this effect existed only for democratic countries (- 0.15, CI - 0.03 to - 0.28). The effect was more prevalent when the governments allowed the media more freedom (score of 100, - 0.31, CI - 0.17 to - 0.45) or when a country's capital-labor ratio of endowments was high (50,000, - 0.22, CI - 0.08 to - 0.35). Trade brings about positive mental health outcomes indemocracies, countries havingfree media, or capital-abundant economies.