The Political Economy of Administering Trade Laws
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.
KeywordsAssure Malaysia Protec
Unable to display preview. Download preview PDF.
- 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
- Buchanan, J. M. and G. Tullock (1962) The Calculus of Consent (Ann Arbor, Mich: University of Michigan Press).Google Scholar
- Frey, B. S. (1984) International Political Economics (Oxford: Basil Blackwell).Google Scholar
- Grossman, G. M. and E. Helpman (1994) ‘Protection for Sale’, American Economic Review, vol. 84, no. 4, pp. 833–50.Google Scholar
- Hillman, A. L. (1982) ‘Declining Industries and Political-Support Protectionist Motives’, American Economic Review, vol. 72, no. 5, pp. 1180–7.Google Scholar
- Hillman, A. L. (1989) The Political Economy of Protection (Chur: Harwood Academic Publishers).Google Scholar
- 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
- Milgrom, P. and J. Roberts (1992) Economics, Organization and Management (Engle-wood Cliffs, NJ: Prentice Hall).Google Scholar
- Sazanami, Y., S. Urata and H. Kawai (1995) Measuring the Costs of Protection in Japan (Washington, DC: Institute for International Economics).Google Scholar
- United States Trade Representative (1995) 1995 National Trade Estimate Report on Foreign Trade Barriers (Washington, DC: US Government Printing Office).Google Scholar