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Special Interests And The Gains From Political Integration

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  • DANIEL BROU
  • MICHELE RUTA

Abstract

This paper presents a formal study of economic influence by special‐interest groups under political integration and separation. We first show that countries where more groups are organized to lobby gain from political integration on economic grounds. The reason is that a more organized country, under a political union, can affect policies in the other country to its advantage, something that a less organized country can do to a lesser extent. We then study the interaction of political integration and endogenous lobbying structure. We show that political integration affects the formation of interest groups. Moreover, if a country is more organized before political integration, this will continue to be the case afterward.

Suggested Citation

  • Daniel Brou & Michele Ruta, 2006. "Special Interests And The Gains From Political Integration," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 191-218, July.
    • Handle: RePEc:bla:ecopol:v:18:y:2006:i:2:p:191-218
    DOI: 10.1111/j.1468-0343.2006.00168.x
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    References listed on IDEAS

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    1. Mattli,Walter, 1999. "The Logic of Regional Integration," Cambridge Books, Cambridge University Press, number 9780521632270, September.
    2. Mattli,Walter, 1999. "The Logic of Regional Integration," Cambridge Books, Cambridge University Press, number 9780521635363, September.
    3. Ruta, Michele, 2003. "The allocation of competencies in an international union: a positive analysis," Working Paper Series 220, European Central Bank.
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    Citations

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    Cited by:

    1. Francesco Porcelli, 2009. "Effects of fiscal decentralisation and electoral accountability efficiency evidence from the Italian health care sector," Working Papers 2009/29, Institut d'Economia de Barcelona (IEB).
    2. Ben Lockwood, 2008. "Voting, Lobbying, And The Decentralization Theorem," Economics and Politics, Wiley Blackwell, vol. 20(3), pages 416-431, November.
    3. Cristina Constantinescu & Aaditya Mattoo & Alen Mulabdic & Michele Ruta, 2018. "Global Trade Watch 2017," World Bank Publications - Reports 29785, The World Bank Group.
    4. Giovanni Facchini & Cecilia Testa, 2009. "Who Is Against a Common Market?," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 1068-1100, September.
    5. Michela Redoano, 2010. "Does Centralization Affect the Number and Size of Lobbies?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 407-435, June.
    6. Francesco Porcelli, 2009. "Effects of fiscal decentralisation and electoral accountability efficiency evidence from the Italian health care sector," Working Papers 2009/29, Institut d'Economia de Barcelona (IEB).
    7. Barbara Dluhosch & Daniel Horgos & Klaus W. Zimmermann, 2016. "EU enlargement and satisfaction with democracy: a peculiar case of immiserizing growth," Constitutional Political Economy, Springer, vol. 27(3), pages 273-298, September.
    8. Martimort, David, 2019. ""When Olson Meets Dahl": From Inefficient Groups Formation to Inefficient Policy-Making," CEPR Discussion Papers 13843, C.E.P.R. Discussion Papers.
    9. Cheng Li, 2020. "Centralized policymaking and informational lobbying," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 54(4), pages 527-557, April.
    10. Nikitas Konstantinidis, 2008. "Gradualism and uncertainty in international union formation: The European Community’s first enlargement," The Review of International Organizations, Springer, vol. 3(4), pages 399-433, December.
    11. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    12. Bordignon, Massimo & Colombo, Luca & Galmarini, Umberto, 2008. "Fiscal federalism and lobbying," Journal of Public Economics, Elsevier, vol. 92(12), pages 2288-2301, December.
    13. Ruta, Michele, 2009. "Political constraints to growth in an economic union," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 989-997, August.
    14. Cyrille Schwellnus, 2008. "The Non‐Traded Sector, Lobbying, And The Choice Between The Customs Union And The Common Market," Economics and Politics, Wiley Blackwell, vol. 20(3), pages 361-390, November.

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