This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

From Protectionism to Regionalism: Multinational Firms and Trade-Related Investment Measures

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Kerry Chase (Tufts University)
Abstract

Trade-related investment measures (TRIMs) have been a key issue in regional and multilateral trade negotiations, but they have received little attention in theoretical work to date. This article analyzes the political economy of TRIMs to illuminate why regional arrangements have been a popular framework for eliminating them. The main argument is that multinational firms often demand safeguards when TRIMs are being liberalized, particularly if they have large sunk costs due to asset specificity. In general, regional arrangements are better equipped than multilateral rules to incorporate the safeguards these firms demand: regionalism requires governments to make binding commitments, and it creates opportunities to discriminate against outsiders. A case study of lobbying by U.S. companies with FDI in Canada from the early twentieth century to the negotiation of the Canada-United States Free Trade Agreement illustrates these points. The article concludes that regional arrangements are likely to remain more active, and more successful, than multilateral discussions in managing the commitment problems inherent in liberalizing TRIMs.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1067&context=bap
File Format: application/pdf
File Function:
Download Restriction: Subscription to the journal may be required to access full texts.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Berkeley Electronic Press in its journal Business and Politics.

Volume (Year): 6 (2004)
Issue (Month): 2 ()
Pages: 1067-1067
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:bep:buspol:6:2004:2:1067-1067

Note: oai:bepress:bap-1067
Contact details of provider:
Web page: http://www.bepress.com/bap/

Order Information:
Web: http://www.bepress.com/subscriptions.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Trade-related investment measures foreign direct investment regional trading arrangements World Trade Organization

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. de Melo, Jaime & Panagariya, Arvind & Rodrik, Dani, 1993. "The new regionalism : a country perspective," Policy Research Working Paper Series 1094, The World Bank. [Downloadable!]
    Other versions:
  2. Tornell, Aaron, 1991. "Time Inconsistency of Protectionist Programs," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 963-74, August. [Downloadable!] (restricted)
  3. Grossman, Gene M, 1981. "The Theory of Domestic Content Protection and Content Preference," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 583-603, November. [Downloadable!] (restricted)
  4. Horstmann, Ignatius J. & Markusen, James R., 1986. "Up the average cost curve: Inefficient entry and the new protectionism," Journal of International Economics, Elsevier, vol. 20(3-4), pages 225-247, May. [Downloadable!] (restricted)
  5. Abbott, Frederick M, 2000. "NAFTA and the Legalization of World Politics: A Case Study," International Organization, MIT Press, vol. 54(3), pages 519-47, Summer.
  6. Hefeker, Carsten & Gros, Daniel, 2000. "The Dynamics of Trade Integration and the Political Value of Commitment," Oxford Economic Papers, Oxford University Press, vol. 52(2), pages 398-414, April.
  7. Aaron Tornell & Gerardo Esquivel, 1995. "The Political Economy of Mexico's Entry to NAFTA," NBER Working Papers 5322, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Balasubramanyam, V. N., 1991. "Putting TRIMs to good use," World Development, Elsevier, vol. 19(9), pages 1215-1224, September. [Downloadable!] (restricted)
  9. Greenaway, David, 1992. "Trade Related Investment Measures and Development Strategy," Kyklos, Blackwell Publishing, vol. 45(2), pages 139-59.
  10. Gregory W. Noble, 2001. "Congestion Ahead: Japanese Automakers in Southeast Asia," Business and Politics, Berkeley Electronic Press, vol. 3(2), pages 157-184. [Downloadable!] (restricted)
  11. Staiger, Robert W & Tabellini, Guido, 1987. "Discretionary Trade Policy and Excessive Protection," American Economic Review, American Economic Association, vol. 77(5), pages 823-37, December. [Downloadable!] (restricted)
  12. Kahler, Miles, 2000. "Legalization as Strategy: The Asia-Pacific Case," International Organization, MIT Press, vol. 54(3), pages 549-71, Summer.
  13. Brewer, Thomas L & Young, Stephen, 1998. "Investment Issues at the WTO: The Architecture of Rules and the Settlement of Disputes," Journal of International Economic Law, Oxford University Press, vol. 1(3), pages 457-70, September.
  14. Jean Tirole, 1999. "Incomplete Contracts: Where Do We Stand?," Econometrica, Econometric Society, vol. 67(4), pages 741-782, July.
  15. John Whalley, 1996. "Why Do Countries Seek Regional Trade Agreements?," NBER Working Papers 5552, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Giovanni Maggi & Andres Rodriguez-Clare, 1998. "The Value of Trade Agreements in the Presence of Political Pressures," Journal of Political Economy, University of Chicago Press, vol. 106(3), pages 574-601, June. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Park, Innwon & Park, Soonchan, 2006. "Reform-creating regional trade agreements and foreign direct investment: applications for East Asia," MPRA Paper 1817, University Library of Munich, Germany, revised Jan 2007. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS is also providing many rankings, for example of authors and institutions.

This page was last updated on 2008-11-25.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.