The paper explores the effect of protection lobbying by solving a firm's dynamic optimization problem where there is uncertainty about future demand, the success of lobbying and non-zero entry/exit costs. It is found that firms in declining industries tend to lobby to prevent shutting down...

The objective of this paper is to examine the effects of political asymmetries on a FTA and a CU. I have shown that either a higher lobbying sensitivity to the foreign firm or a more susceptibility of politicians to lobbying are sufficient to lead to a higher tariff protection at the individual...

In this paper we explore the effect of protection lobbying by solving a firm's dynamic optimisation problem where there is uncertainty about future demand, the success of lobbying and non-zero entry/exit costs. We find out that the firms in declining industries tend to lobbying in economic...