EconPapers    
Economics at your fingertips  
 

Possible Unintended Effects of Restrictions on Foreign Lobbying in a Customs Union

Subhayu Bandyopadhyay () and Sajal Lahiri

No 2012-061, Working Papers from Federal Reserve Bank of St. Louis

Abstract: We consider the interactions between domestic lobbying and cross-border lobbying in a Customs Union (CU) in determining the Common External Tariff (CET). There are two types of cross-border lobbying: (i) lobbying from member-nation firms to the governments of other CU countries, and (ii) lobbying by firms from outside to the CU nation governments. Within this context, we analyze the effect of regulations on foreign lobbying on the equilibrium lobbying levels, and on the CET. If lobbying levels are strategic complements, tightening of restrictions on lobbying from outside the CU unambiguously reduces all types of lobbying. If non-CU firms are relatively large, the CET will rise in response to tighter regulations.

Keywords: Free Trade Area; Customs Union; Preferential Trading Agreements; Domestic lobbying; Cross-border lobbying; External tariffs. (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Date: 2012, Revised 2016-05-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://research.stlouisfed.org/wp/2012/2012-061.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:2012-061

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates ().

 
Page updated 2019-10-09
Handle: RePEc:fip:fedlwp:2012-061