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The Politics of Free-Trade Agreements

Gene Grossman and Elhanan Helpman

American Economic Review, 1995, vol. 85, issue 4, 667-90

Abstract: Suppose that an opportunity arises for two countries to negotiate a free-trade agreement. Will a free-trade agreement between these countries be politically viable and, if so, what form will it take? The authors address these questions using a political-economy framework that emphasizes the interaction between industry special-interest groups and an incumbent government. They describe the economic conditions necessary for a free-trade agreement to be an equilibrium outcome, both for the case when the agreement must cover all bilateral trade and for the case when a few politically sensitive sectors can be excluded from the agreements. Copyright 1995 by American Economic Association.

Date: 1995
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Related works:
Working Paper: The Politics of Free Trade Agreements (1994) Downloads
Working Paper: The Politics of Free Trade Agreements (1993) Downloads
Working Paper: The Politics of Free Trade Agreements (1993)
Working Paper: The Politics of Free Trade Agreements (1993)
Working Paper: The Politics of Free Trade Agreements (1993) Downloads
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