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Lobbying, multisector trade, and sustainability of free-trade agreements

Larry Qiu

Canadian Journal of Economics, 2004, vol. 37, issue 4, 1061-1083

Abstract: This paper is concerned with the sustainability of free-trade agreements (FTA). FTA sustainability is influenced by governments' valuations of political contributions, discount factors, the lobbying position of the specific-interest groups in the intra-industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby-supported FTA is more sustainable than the lobby-opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability.

JEL-codes: F12 F13 F15 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (3)

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