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Special Interests And The Gains From Political Integration

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  • DANIEL BROU
  • MICHELE RUTA

Abstract

This paper presents a formal study of economic influence by special-interest groups under political integration and separation. We first show that countries where more groups are organized to lobby gain from political integration on economic grounds. The reason is that a more organized country, under a political union, can affect policies in the other country to its advantage, something that a less organized country can do to a lesser extent. We then study the interaction of political integration and endogenous lobbying structure. We show that political integration affects the formation of interest groups. Moreover, if a country is more organized before political integration, this will continue to be the case afterward. Copyright 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Economics & Politics.

Volume (Year): 18 (2006)
Issue (Month): 2 (07)
Pages: 191-218

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Handle: RePEc:bla:ecopol:v:18:y:2006:i:2:p:191-218

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Cited by:
  1. Giovanni Facchini & Cecilia Testa, 2008. "Who is Against a Common Market?," Development Working Papers 240, Centro Studi Luca d\'Agliano, University of Milano.
  2. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах
    [ENDOGENOUS BOUNDARIES AND DISTRIBUTION O
    ," MPRA Paper 16473, University Library of Munich, Germany.
  3. Bordignon, Massimo & Colombo, Luca & Galmarini, Umberto, 2008. "Fiscal federalism and lobbying," Journal of Public Economics, Elsevier, vol. 92(12), pages 2288-2301, December.
  4. Nikitas Konstantinidis, 2008. "Gradualism and uncertainty in international union formation: The European Community’s first enlargement," The Review of International Organizations, Springer, vol. 3(4), pages 399-433, December.
  5. Francesco Porcelli, 2009. "Effects of fiscal decentralisation and electoral accountability efficiency evidence from the Italian health care sector," Working Papers 2009/29, Institut d'Economia de Barcelona (IEB).
  6. Ruta, Michele, 2009. "Political constraints to growth in an economic union," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 989-997, August.

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