Cole, Matthew T.
[VerfasserIn]
;
Lake, James
[Sonstige Person, Familie und Körperschaft];
Zissimos, Benjamin
[Sonstige Person, Familie und Körperschaft]
Erschienen in:CESifo Working Paper Series ; No. 6956
Umfang:
1 Online-Ressource (62 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3180502
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 09, 2018 erstellt
Beschreibung:
We develop a new theoretical framework of trade agreement (TA) formation, called a ‘parallel contest', that emphasizes the political fight over TA ratification within countries. TA ratification is inherently uncertain in each country, where anti- and pro-trade interest groups contest each other to influence their own governments' ratification decision. Unlike prior literature, the protection embodied in negotiated TA tariffs reflects a balance between the liberalizing force of lobbying and inherently protectionist government preferences. Moreover, new international political externalities emerge that are not internalized by governments that just internalize terms of trade externalities