Trade policy in majoritarian systems: the case of the U.S

Per Fredriksson, Xenia Matschke and Jenny Minier

Canadian Journal of Economics/Revue canadienne d'économique, 2011, vol. 44, issue 2, 607-626

Abstract: Abstract We provide a theory of trade policy determination that incorporates the protectionist bias inherent in majoritarian systems, suggested by Grossman and Helpman (2005). The prediction that emerges is that in majoritarian systems, the majority party favours industries located disproportionately in majority districts. We test this prediction using U.S. data on tariffs, Congressional campaign contributions, and industry location in districts represented by the majority party over the period 1989–97. We find evidence of a significant majority bias in trade policy: the benefit to being represented by the majority party appears at least as large in magnitude as the benefit to lobbying. On propose une théorie de la détermination de la politique commerciale qui incorpore le tendence protectionniste inhérent aux systèmes électoraux à scrutin majoritaire selon Grossman et Helpman (2005). La prédiction qui en ressort est que, dans un tel système, le parti de la majorité favorise les industries localisées de façon disproportionnée dans les circonscriptions détenues par la majorité. On évalue cette prédiction à l'aide des données sur les tarifs douaniers aux Etats‐Unis, sur les contributions aux campagnes électorales au Congrès, et sur la localisation des industries dans les circonscriptions représentées par le parti de la majorité pour la période 1989–97. Les résultats révèlent un biais significatif dans la politique commerciale : l'avantage d'être représenté par le parti de la majorité s'avère au moins aussi important que l'avantage du lobbying. If they [politicians] are successful, they claim, as a matter of right, the advantages of success. They see nothing wrong in the rule, that to the victor belong the spoils of the enemy. (New York Senator William L. Marcy, referring to the victory of the Jackson Democrats in the election of 1828, in the U.S. Senate, 25 January 1832).1

Date: 2011
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https://doi.org/10.1111/j.1540-5982.2011.01646.x

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Journal Article: Trade policy in majoritarian systems: the case of the U.S (2011)
Working Paper: Trade Policy in Majoritarian Systems: The Case of the U.S (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:44:y:2011:i:2:p:607-626

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