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We develop a model in which special interest groups make political contributions in order to influence an incumbent government's choice of trade policy. In the political equilibrium. the interest groups bid for protection, and each group's offer is optimal given the offers of the others. The...
Persistent link: https://www.econbiz.de/10013229813
Using the menu-auction approach to endogenous determination of tariffs and allowing additionally for lobby formation itself to be endogenous, this paper analyzes the impact of unilateral trade liberalization by one country on its partner's trade policies. We find that such unilateral...
Persistent link: https://www.econbiz.de/10013231406
Economists and political scientists have frequently attempted to determine whether trade policy-related political action takes place along factor-lines (such as capital versus labor, as implied by the Stolper-Samuelson theorem) or along industry-lines (as implied by models with imperfect factor...
Persistent link: https://www.econbiz.de/10013215706
investigates empirically the consequences of lobbying competition between upstream and downstream producers for trade policy. The … with lobbying competition. Importantly, accounting for lobbying competition also alters substantially estimates of the …
Persistent link: https://www.econbiz.de/10013217953
This paper employs a novel data set on lobbying expenditures to measure the degree of within-sector political … organization and to explore the determinants of the mode of lobbying and political organization across U.S. industries. The data …
Persistent link: https://www.econbiz.de/10012764629
This paper evaluates the influence of diverse U.S. agricultural interest groups on the North American Free Trade Agreement (NAFTA). Under NAFTA, licenses and quotas that restricted agricultural trade between Mexico and the United States were converted to tariffs in January 1994 and all tariffs...
Persistent link: https://www.econbiz.de/10013038635
This paper examines voting by members of Congress on three trade bills introduced in 1993 and 1994: the North American Free Trade Agreement (NAFTA), the agreements concluded in the Uruguay Round of multilateral trade negotiations (GATT), and most-favored nation status for China. We first review...
Persistent link: https://www.econbiz.de/10013224935
In popular discussion much has been made recently of the susceptibility of government policies to lobbying by … fact be harmful: If the policy outcome absent any lobbying by foreigners is characterized by welfare-reducing trade … barriers, lobbying by foreigners may result in reductions in such barriers and raise consumer surplus (and possibly improve …
Persistent link: https://www.econbiz.de/10013227061
We exploit the recent declassification of CIA documents and examine whether there is evidence of US power being used to influence countries' decisions regarding international trade. We measure US influence using a newly constructed annual panel of CIA interventions aimed at installing and...
Persistent link: https://www.econbiz.de/10013143469
In democracies, trade policy is the result of interactions among many agents with different agendas. In accordance with this observation, we construct a dynamic model of legislative trade policy-making in the realm of distributive politics. An economy consists of different sectors, each of which...
Persistent link: https://www.econbiz.de/10013121949