On the Internalization of Cross-National Externalities through Political Markets: The Case of Labour Standards

Toke Aidt and Uk Hwang

Journal of Institutional and Theoretical Economics (JITE), 2008, vol. 164, issue 3, 509-533

Abstract: Can lobbying internalize cross-national externalities? This paper investigates this in a two-country economy where governments regulate labour markets through national labour standards, but are subject to lobbying. We study four different lobbying architectures and show that cross-national externalities are fully internalized in two cases: (i) when governments enter binding international agreements and (ii) when international lobbying is complete. In cases where international lobbying is incomplete, e.g., because of disagreement among lobby groups in different countries or direct bans on lobbying of foreign governments, internalization is also incomplete and a role remains for governments to enter into binding agreements.

JEL-codes: D78 F12 F16 J51 J8 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://www.mohrsiebeck.com/en/article/on-the-inte ... 28093245608785363380 (text/html)
Fulltext access is included for subscribers to the printed version.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mhr:jinste:urn:sici:0932-4569(200809)164:3_509:otioce_2.0.tx_2-p

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

Access Statistics for this article

Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C

More articles in Journal of Institutional and Theoretical Economics (JITE) from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().