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Who Gains from Tariff Escalation?

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  • Basudeb Guha-Khasnobis

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.

Suggested Citation

  • Basudeb Guha-Khasnobis, 2003. "Who Gains from Tariff Escalation?," WIDER Working Paper Series DP2003-62, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-62
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-062.pdf
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    References listed on IDEAS

    as
    1. Martin,Will & Winters,L. Alan (ed.), 1996. "The Uruguay Round and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521586016, November.
    2. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
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