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Lobbying, multisector trade, and sustainability of free‐trade agreements

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  • Larry D. Qiu

Abstract

. This paper is concerned with the sustainability of free‐trade agreements (FTA). FTA sustainability is influenced by governments’ valuations of political contributions, discount factors, the lobbying position of the specific‐interest groups in the intra‐industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby‐supported FTA is more sustainable than the lobby‐opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability. JEL Classification: F12, F13, F15. Lobbying, commerce multisectoriel et durabilité des accords de libre échange. Ce mémoire examine la durabilité des arrangements de libre échange (ALE). Celle‐ci est influencée par les évaluations par les gouvernements des contributions politiques, les facteurs d’escompte, la position de lobbying des groupes d’intérêt spécifiques dans les secteurs de commerce intra‐industriel, et la couverture sectorielle de l’accord de libre échange. L’auteur trouve que (i),sous certaines conditions, l’ALE pourrait être plus durable s’il y a lobbying protectionniste que si pression politique il n’y a pas; (ii) l’ALE supporté par du lobbying est plus durable que l’ALE opposé au lobbying et sans pression de lobbying; et (iii) le commerce multisectoriel améliore la durabilité de l’ALE.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:canjec:v:37:y:2004:i:4:p:1061-1083
    DOI: 10.1111/j.0008-4085.2004.00260.x
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    Cited by:

    1. Larry D. Qiu, 2008. "Endogenous Lobbying Positions," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 641-653, September.
    2. Toke S. Aidt & Uk Hwang, 2014. "To Ban or Not to Ban: Foreign Lobbying and Cross-National Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 47(1), pages 272-297, February.
    3. Cai Dapeng & Li Jie, 2014. "Subsidization And Bargaining In Mixed Oligopolies," Bulletin of Economic Research, Wiley Blackwell, vol. 66(4), pages 358-373, October.

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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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