IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v16y2008i4p641-653.html
   My bibliography  Save this article

Endogenous Lobbying Positions

Author

Listed:
  • Larry D. Qiu

Abstract

This paper develops a two‐country, two‐firm model to study equilibrium lobbying positions in intra‐industry trade. A firm chooses either a protectionist position or a free‐trade position. The model predicts that taking the free‐trade lobbying position is an efficient firm's dominant strategy. If two firms have high costs (or when the demand is very weak), there exist two equilibria: either both firms take the free‐trade position or both take the protectionist lobbying position. In other cases, both firms taking the free‐trade lobbying position is a unique equilibrium.

Suggested Citation

  • Larry D. Qiu, 2008. "Endogenous Lobbying Positions," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 641-653, September.
    • Handle: RePEc:bla:reviec:v:16:y:2008:i:4:p:641-653
    DOI: 10.1111/j.1467-9396.2008.00769.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9396.2008.00769.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9396.2008.00769.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    2. Hillman, Arye L. & Van Long, Ngo & Soubeyran, Antoine, 2001. "Protection, lobbying, and market structure," Journal of International Economics, Elsevier, vol. 54(2), pages 383-409, August.
    3. Arye L. Hillman & Heinrich W. Ursprung, 2008. "Domestic Politics, Foreign Interests, and International Trade Policy," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 113-129, Springer.
    4. Larry D. Qiu, 2004. "Lobbying, multisector trade, and sustainability of free‐trade agreements," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(4), pages 1061-1083, November.
    5. Edward J. Ray, 1991. "Protection of Manufactures in the United States," Palgrave Macmillan Books, in: David Greenaway & Robert C. Hine & Anthony P. O’Brien & Robert J. Thornton (ed.), Global Protectionism, chapter 2, pages 12-36, Palgrave Macmillan.
    6. Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494, Elsevier.
    7. Steven Husted, 1991. "Foreign Lobbying: A Theoretical Analysis," Eastern Economic Journal, Eastern Economic Association, vol. 17(1), pages 89-99, Jan-Mar.
    8. G. M. Grossman & K. Rogoff (ed.), 1995. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 3, number 3.
    9. Katayama, Seiichi & Ursprung, Heinrich W., 2004. "Commercial culture, political culture and economic policy polarization: the case of Japan," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 351-375, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dapeng Cai & Jie Li, 2014. "Protection versus Free Trade: Lobbying Competition between Domestic and Foreign Firms," Southern Economic Journal, John Wiley & Sons, vol. 81(2), pages 489-505, October.
    2. Kim, Young-Han & Kim, Sang-Kee, 2012. "Welfare effects of competitive lobbying efforts in international oligopoly markets," Economic Modelling, Elsevier, vol. 29(3), pages 614-620.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Toke S. Aidt & Uk Hwang, 2014. "To Ban or Not to Ban: Foreign Lobbying and Cross‐National Externalities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(1), pages 272-297, February.
    2. Zaidi Sattar & Ashikur Rahman, 2016. "Political Economy of Trade Policy," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 1-26, March.
    3. Katayama, Seiichi & Ursprung, Heinrich W., 2004. "Commercial culture, political culture and economic policy polarization: the case of Japan," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 351-375, July.
    4. Giovanni Facchini & Johannes Van Biesebroeck & Gerald Willmann, 2006. "Protection for sale with imperfect rent capturing," Canadian Journal of Economics, Canadian Economics Association, vol. 39(3), pages 845-873, August.
    5. Hillman, Arye L. & Van Long, Ngo & Soubeyran, Antoine, 2001. "Protection, lobbying, and market structure," Journal of International Economics, Elsevier, vol. 54(2), pages 383-409, August.
    6. Helpman, E., 1995. "Politics and Trade Policy," Papers 30-95, Tel Aviv - the Sackler Institute of Economic Studies.
    7. Subhayu Bandyopadhyay & Eun‐Soo Park & Howard J. Wall, 2004. "Endogenous Export Subsidies And Welfare Under Domestic Cost Heterogeneity," Economics and Politics, Wiley Blackwell, vol. 16(3), pages 347-366, November.
    8. Pravin Krishna & Devashish Mitra, 2003. "Reciprocated Unilateralism in Trade Policy: An Interest-Group Approach," NBER Working Papers 9631, National Bureau of Economic Research, Inc.
    9. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.
    10. Aidt, Toke S., 1998. "Political internalization of economic externalities and environmental policy," Journal of Public Economics, Elsevier, vol. 69(1), pages 1-16, July.
    11. Afontsev Serguey, 2002. "Endogenous Tariff Protection and the Level of Trade Distortions in Russia," EERC Working Paper Series 01-07e, EERC Research Network, Russia and CIS.
    12. Dutt, Pushan & Mitra, Devashish, 2009. "Explaining Agricultural Distortion Patterns : The Roles of Ideology, Inequality, Lobbying and Public Finance," Agricultural Distortions Working Paper Series 50299, World Bank.
    13. Pavcnik, Nina & Goldberg, Pinelopi, 2016. "The Effects of Trade Policy," CEPR Discussion Papers 11104, C.E.P.R. Discussion Papers.
    14. Rodrik, Dani, 1994. "What does the Political Economy Literature on Trade Policy (Not) Tell Us That We Ought to Know?," CEPR Discussion Papers 1039, C.E.P.R. Discussion Papers.
    15. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Protection for sale or surge protection?," European Economic Review, Elsevier, vol. 53(6), pages 675-688, August.
    16. Schweinberger, Albert G. & Lahiri, Sajal, 2006. "On the provision of official and private foreign aid," Journal of Development Economics, Elsevier, vol. 80(1), pages 179-197, June.
    17. Pokrivcak, Jan, 2007. "Economics and Political Economy of Regional Trade Agreements," Working Papers 7286, TRADEAG - Agricultural Trade Agreements.
    18. Philip I. Levy, 2003. "Non-Tariff Barriers as a Test of Political Economy Theories," Working Papers 852, Economic Growth Center, Yale University.
    19. Magee, Christopher S.P. & Davidson, Carl & Matusz, Steven J., 2005. "Trade, turnover, and tithing," Journal of International Economics, Elsevier, vol. 66(1), pages 157-176, May.
    20. Kishore Gawande & Pravin Krishna & Michael J. Robbins, 2006. "Foreign Lobbies and U.S. Trade Policy," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 563-571, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:16:y:2008:i:4:p:641-653. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.