Who Gains from Tariff Escalation?

Basudeb Guha-Khasnobis

No DP2003-62, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: With the help of a simple model of production and trade, we examine the differential impact of tariff escalation on skilled and unskilled wages in an economy. Our findings provide a lobbying-based explanation of the prevalence of tariff escalation in developed countries. It also predicts the possible response of a developing country and shows how similar lobbying activity in that country can slow the pace of liberalization of service sector trade.

Keywords: Economic development; Service industries; Wages (search for similar items in EconPapers)
Date: 2003
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