LOBBYING COMPETITION OVER TRADE POLICY

成果类型:
Article
署名作者:
Gawande, Kishore; Krishna, Pravin; Olarreaga, Marcelo
署名单位:
Johns Hopkins University; Texas A&M University System; Texas A&M University College Station; National Bureau of Economic Research; University of Geneva
刊物名称:
INTERNATIONAL ECONOMIC REVIEW
ISSN/ISSBN:
0020-6598
DOI:
10.1111/j.1468-2354.2011.00673.x
发表日期:
2012
页码:
115-132
关键词:
protection sale
摘要:
Competition between opposing lobbies is an important factor in the endogenous determination of trade policy. This article investigates the consequences of lobbying competition between upstream and downstream producers. The theoretical structure underlying the empirical analysis is the well-known GrossmanHelpman model of trade policy determination, modified to account for the cross-sectoral use of inputs (itself a quantitatively significant phenomenon, with around 50% of manufacturing output being used by other sectors rather than in final consumption). Our empirical results validate the theoretical predictions. Importantly, accounting for lobbying competition also alters substantially estimates of the welfare-mindedness of governments in setting trade policy.