The Politics of Free Trade Agreements

Gene Grossman and Elhanan Helpman

No 275582, Foerder Institute for Economic Research Working Papers from Tel-Aviv University > Foerder Institute for Economic Research

Abstract: Suppose that an opportunity arises for two countries to negotiate a free trade agreement (FTA). Will an FTA between these countries be politically viable? And if so, what form will it take? We address these questions using a political-economy framework that emphasizes the interaction between industry tpecial interest groups and an incumbent government. We describe the economic conditions necessary for an FTA to be an equilibrium outcome, both for the case when the agreement must cover all bilateral trade and when a few, politically sensitive sectors can be excluded from the agreement.

Keywords: Financial Economics; Political Economy (search for similar items in EconPapers)
Pages: 57
Date: 1993-12
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Citations: View citations in EconPapers (20)

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Related works:
Journal Article: The Politics of Free-Trade Agreements (1995)
Working Paper: The Politics of Free Trade Agreements (1994)
Working Paper: The Politics of Free Trade Agreements (1993)
Working Paper: The Politics of Free Trade Agreements (1993)
Working Paper: The Politics of Free Trade Agreements (1993)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:isfiwp:275582

DOI: 10.22004/ag.econ.275582

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