To Ban or Not to Ban: Foreign Lobbying and Cross-National Externalities

Toke Aidt and Uk Hwang

Canadian Journal of Economics, 2014, vol. 47, issue 1, 272-297

Abstract: This paper studies the costs and benefits of foreign lobbying. We show how and when foreign lobbying can help internalize crossnational externalities. We argue that this is an often overlooked benefit of foreign lobbying. We also study under what conditions a constitutional rule banning foreign lobbying is in the national interest of a country. A key factor in this calculus is whether the interests of foreign lobby groups and domestic unorganized groups coincide or not. We illustrate the logic with examples from trade policy and environmental regulation.

JEL-codes: D62 D72 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (17)

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Working Paper: To Ban or Not to Ban: Foreign Lobbying and Cross National Externalities (2014)
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