Foreign Lobbying: A Theoretical Analysis

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Foreign Lobbying: A Theoretical Analysis

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Steven Husted (University of Pittsburgh)

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Steven Husted

Abstract

This paper uses general equilibrium modeling popularized by J. Bhagwati to explore the economic consequences of foreign financed lobbying in an open economy. It is shown that, unlike domestic lobbying, foreign lobbying need not be directly unproductive, at least in the country where the lobbying occurs. Under plausible conditions, foreign lobbying may even raise domestic welfare relative to free trade with no lobbying. Also included in the paper are some data on the level and types of foreign lobbying in the United States in 1984. Contrary to popular belief, these expenditures appear to be quite small relative to other trade flows and potential benefits.

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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 17 (1991)
Issue (Month): 1 (Jan-Mar)
Pages: 89-99
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Handle: RePEc:eej:eeconj:v:17:y:1991:i:1:p:89-99

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

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.:

Bhagwati, Jagdish N & Srinivasan, T N, 1980. "Revenue Seeking: A Generalization of the Theory of Tariffs," Journal of Political Economy, University of Chicago Press, vol. 88(6), pages 1069-87, December. [Downloadable!] (restricted)
Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1985. "The Generalized Theory of Transfers and Welfare: Exogenous (Policy-imposed) and Endogenous (Transfer-induced) Distortions," The Quarterly Journal of Economics, MIT Press, vol. 100(3), pages 697-714, August. [Downloadable!] (restricted)
Hillman, Arye L & Ursprung, Heinrich W, 1988. "Domestic Politics, Foreign Interests, and International Trade Policy," American Economic Review, American Economic Association, vol. 78(4), pages 719-45, September.

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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.)

Aidt, T.S. & Hwang, U., 2008. "One Cheer for Foreign Lobbying," Cambridge Working Papers in Economics 0860, Faculty of Economics, University of Cambridge. [Downloadable!]
Steven Husted & James Cassing, 2006. "Lobbying as a Transport Industry," Working Papers 222, University of Pittsburgh, Department of Economics, revised Jan 2006. [Downloadable!]
Gawande, Kishore & Maloney, William & Montes Rojas, Gabriel V., 2009. "Foreign informational lobbying can enhance tourism : evidence from the Caribbean," Policy Research Working Paper Series 4834, The World Bank. [Downloadable!]

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