Reciprocated Unilateralism in Trade Policy: An Interest-Group Approach / Pravin Krishna, Devashish Mitra.

Format:

Book

Author/Creator:

Krishna, Pravin.

Contributor:

National Bureau of Economic Research.

Mitra, Devashish.

Series:

Working Paper Series (National Bureau of Economic Research) no. w9631.

NBER working paper series no. w9631

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Reciprocated Unilateralism in Trade Policy

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2003.

Summary:

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 liberalization may induce reciprocal tariff reductions by the partner country. Intuitively, unilateral liberalization by one country has the effect of increasing the incentives for the export lobby in the partner country to form and to lobby effectively against the import-competing lobby there for lower protection.

Notes:

Print version record

April 2003.