Advertisement

The Political Economy of Administering Trade Laws

  • Wolfgang Mayer
  • Elhanan Helpman
Part of the International Economic Association Series book series (IEA)

Abstract

Domestic industries can be protected from foreign competition through a vast array of policy measures. Some measures — such as import tariffs, quantitative restrictions, and anti-dumping and countervailing duties — are aimed explicitly at strengthening the competitive position of domestic firms, while others — such as product standards, testing and labelling requirements, and even certain types of sales taxes2 — have differently stated aims but the same ultimate effects of industry protection. Students of the political economy of international trade assert that both explicit and implicit measures of protection are the result of governments’ attempts to maximize their political power. In a democracy, this generally means that a government legislates and administers laws with the objective of maximizing its chances of being re-elected.

Keywords

Trade Policy Political Support Tariff Rate Domestic Industry Discretionary Power 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Baldwin, R. E. and M. O. Moore (1991) ‘Political Aspects of the Administration of the Trade Remedy Laws’, in R. Boltuck and R. E. Litan (eds), Down in the Dumps (Washington, DC: The Brookings Institution).Google Scholar
  2. Buchanan, J. M. and G. Tullock (1962) The Calculus of Consent (Ann Arbor, Mich: University of Michigan Press).Google Scholar
  3. Frey, B. S. (1984) International Political Economics (Oxford: Basil Blackwell).Google Scholar
  4. Grossman, G. M. and E. Helpman (1994) ‘Protection for Sale’, American Economic Review, vol. 84, no. 4, pp. 833–50.Google Scholar
  5. Hillman, A. L. (1982) ‘Declining Industries and Political-Support Protectionist Motives’, American Economic Review, vol. 72, no. 5, pp. 1180–7.Google Scholar
  6. Hillman, A. L. (1989) The Political Economy of Protection (Chur: Harwood Academic Publishers).Google Scholar
  7. Leidy, M. P. (1994) ‘Quid Pro Quo Restraints and Spurious Injury: Subsidies and the Prospect of CVDs’, in A. V. Deardorff and R. M. Stern (eds), Analytical and Negotiating Issues in the Global Trading System (Ann Arbor, Mich.: University of Michigan Press).Google Scholar
  8. Milgrom, P. and J. Roberts (1992) Economics, Organization and Management (Engle-wood Cliffs, NJ: Prentice Hall).Google Scholar
  9. Peltzman, S. (1976) ‘Toward a More General Theory of Regulation’, Journal of Law and Economics, vol. 19, no. 2, pp. 211–40.CrossRefGoogle Scholar
  10. Sazanami, Y., S. Urata and H. Kawai (1995) Measuring the Costs of Protection in Japan (Washington, DC: Institute for International Economics).Google Scholar
  11. Stigler, G. J. (1971) ‘The Theory of Economic Regulation’, Bell Journal of Economics and Management Science, vol. 2, no. 1, pp. 3–21.CrossRefGoogle Scholar
  12. United States Trade Representative (1995) 1995 National Trade Estimate Report on Foreign Trade Barriers (Washington, DC: US Government Printing Office).Google Scholar
  13. Weingast, B. R. (1984) ‘The Congressional-Bureaucratic System: A Principal Agent Perspective (with Applications to the SEC)’, Public Choice, vol. 44, no. 1, pp. 147–91.CrossRefGoogle Scholar

Copyright information

© International Economic Association 1999

Authors and Affiliations

  • Wolfgang Mayer
    • 1
  • Elhanan Helpman
    • 2
  1. 1.University of CincinnatiUSA
  2. 2.Tel Aviv UniversityIsrael

Personalised recommendations