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Endogeneous Distribution and the Political Economy of Trade Policy

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  • Satya P. Das

    (Indian Statistical Institute)

Abstract

This paper examines the political economy of trade policy in the context of a small open economy, when factor ownerships are variable. The median voter hypothesis is used. In the long run, both trade protection and distribution of wealth and income are endogenous, and the paper investigates how these are affected by basic parameters like terms of trade and technology.

Suggested Citation

  • Satya P. Das, 1999. "Endogeneous Distribution and the Political Economy of Trade Policy," Departmental Working Papers 199913, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:199913
    as

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    References listed on IDEAS

    as
    1. Hillman, Arye L, 1982. "Declining Industries and Political-Support Protectionist Motives," American Economic Review, American Economic Association, vol. 72(5), pages 1180-1187, December.
    2. Alberto Alesina & Dani Rodrik, 1994. "Distributive Politics and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 465-490.
    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. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    5. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    6. Philippe Aghion & Patrick Bolton, 1997. "A Theory of Trickle-Down Growth and Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(2), pages 151-172.
    7. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-985, December.
    8. Thomas Piketty, 1997. "The Dynamics of the Wealth Distribution and the Interest Rate with Credit Rationing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(2), pages 173-189.
    9. Wolfgang Mayer & Raymond Riezman, 2013. "Voter Preferences for Trade Policy Instruments," World Scientific Book Chapters, in: Raymond Riezman (ed.), International Trade Agreements and Political Economy, chapter 11, pages 169-183, World Scientific Publishing Co. Pte. Ltd..
    10. repec:bla:econom:v:67:y:2000:i:266:p:265-81 is not listed on IDEAS
    11. Mayer, Wolfgang & Riezman, Raymond G., 1987. "Endogenous choice of trade policy instruments," Journal of International Economics, Elsevier, vol. 23(3-4), pages 377-381, November.
    12. Levy, Philip I, 1997. "A Political-Economic Analysis of Free-Trade Agreements," American Economic Review, American Economic Association, vol. 87(4), pages 506-519, September.
    13. Wolfgang Mayer & Raymond Riezman, 1989. "Tariff Formation In A Multidimensional Voting Model," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 61-79, March.
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    Cited by:

    1. Das, Satya P., 2006. "Trade, skill acquisition and distribution," Journal of Development Economics, Elsevier, vol. 81(1), pages 118-141, October.

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    More about this item

    Keywords

    Distribution; Median Voter; Politics; Tariff;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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