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

Larry Qiu

Canadian Journal of Economics/Revue canadienne d'économique, 2004, vol. 37, issue 4, 1061-1083

Abstract: 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 Classification: F12, F13, F15. Lobbying, commerce multisectoriel et durabilité des accords de libre échange. Ce mémoire examine la durabilité des arrangements de libre échange (ALE). Celle‐ci est influencée par les évaluations par les gouvernements des contributions politiques, les facteurs d’escompte, la position de lobbying des groupes d’intérêt spécifiques dans les secteurs de commerce intra‐industriel, et la couverture sectorielle de l’accord de libre échange. L’auteur trouve que (i),sous certaines conditions, l’ALE pourrait être plus durable s’il y a lobbying protectionniste que si pression politique il n’y a pas; (ii) l’ALE supporté par du lobbying est plus durable que l’ALE opposé au lobbying et sans pression de lobbying; et (iii) le commerce multisectoriel améliore la durabilité de l’ALE.

Date: 2004
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https://doi.org/10.1111/j.0008-4085.2004.00260.x

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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:37:y:2004:i:4:p:1061-1083

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