Economies of Scale, Ideology and Trade Policy

Daron Djerdjian

International Economic Journal, 2009, vol. 23, issue 1, 1-21

Abstract: This paper analyses trade policy within a modified version of the well-known political economy models of Hillman (1989) and Long & Vousden (1991). The modified model incorporates economies of scale in production and cast doubts on viewing trade policy as solely determined by political ideology and re-election motives. Cross-country analyses confirm our predictions and establish that strategic economic as well as political concerns are dominant in trade policy.

Keywords: Economies of scale; ideology; trade policy; protection; welfare (search for similar items in EconPapers)
Date: 2009
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DOI: 10.1080/10168730802696475

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