Capital Ownership and the Political Economy of Free Trade Agreements

Derek Pyne

Journal of Economic Integration, 2008, vol. 23, 360-389

Abstract:

This article examines the political economy of free trade agreements. It assumes that, unlike labour, capital in two countries is owned and represented by the same lobby group. Using a Heckscher-Ohlin framework, factors affecting the likelihood of political parties and lobby groups supporting free trade agreements are investigated. The effects of free trade agreements on tariffs facing non-member countries are also examined.

Keywords: Trade agreements; Endogenous trade policy (search for similar items in EconPapers)
JEL-codes: D70 F10 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0438

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