Firms and import competition

Emile van Ommeren

Chapter Chapter 3 in Pro Trade, Against Competition, 2025, pp 41-59 from Edward Elgar Publishing

Abstract: Chapter 3 (‘Firms and import competition’) presents the core argument of this book, which is that internationally oriented firms, under conditions of IIT and GVCs integration, have an incentive to lobby for selective trade protection. Rather than distinguishing between ‘pro-trade’ and ‘anti-trade’ firms, I develop a typology of firms with various degrees and combinations of trade interests (i.e., import-competing, export-oriented, and import-dependent interests). Most crucially, I hypothesize that firms with mixed or multidimensional trade interests - stemming from their engagement in IIT and GVCs - are most likely to be in favor of selective trade measures against their most threatening competitors. I explain why the lobbying activities of firms involved in IIT and GVCs can be expected to influence governments’ decisions. Chapter 3 also gives an overview of different national institutions and trade policy instruments.

Keywords: Import competition; Firm-level preferences; Lobbying power; Industrial concentration; Political institutions; Mixed-methods (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035350216
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