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Political Economy of Trade Policy - Institutions, Regulation, Social and Political Context

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  • Oldřich Krpec
  • Vladan Hodulák
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    Abstract

    This paper aims to contribute to the theoretical discussion of free trade and protectionism in international trade within the context of International political economy. Presented approach broadens the standard political economy view of trade policy and goes beyond the redistribution consequences and the political consideration of policy makers. Our interpretation of trade policy works with broader economic values and preferences of individual actors and understands the nation state and its policies as institutions. Social, cultural and historical context is taken into consideration, when interpreting the trade policy. More complex understanding of these determinants helps to explain contemporary trade policies and also their dynamic change. Paper also discuss the links between the trade policy and other economic (structural and industrial) policies and attract attention to possible misunderstandings in contemporary free trade discourse.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Politická ekonomie.

    Volume (Year): 2012 (2012)
    Issue (Month): 1 ()
    Pages: 20-39

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    Handle: RePEc:prg:jnlpol:v:2012:y:2012:i:1:id:830:p:20-39

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    Related research

    Keywords: trade policy; political economy; national security; models of trade with imperfect competition and scale economies; industrial structure and structural change; economic nationalism;

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    References

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    1. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-50, September.
    2. Cletus C. Coughlin, 2002. "The controversy over free trade: the gap between economists and the general public," Review, Federal Reserve Bank of St. Louis, issue Jan., pages 1-22.
    3. Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494 Elsevier.
    4. Baldwin, Robert E, 1989. "The Political Economy of Trade Policy," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 119-35, Fall.
    5. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
    7. David Stafford Ball, 1967. "United States Effective Tariffs and Labor's Share," Journal of Political Economy, University of Chicago Press, vol. 75, pages 183.
    8. Paul Krugman, 1986. "Strategic Trade Policy and the New International Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610450, December.
    9. Magee,Stephen P. & Brock,William A. & Young,Leslie, 1989. "Black Hole Tariffs and Endogenous Policy Theory," Cambridge Books, Cambridge University Press, number 9780521377003, October.
    10. Scheve, Kenneth F. & Slaughter, Matthew J., 2001. "What determines individual trade-policy preferences?," Journal of International Economics, Elsevier, vol. 54(2), pages 267-292, August.
    11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    12. Ronald Findlay & Stanislaw Wellisz, 1982. "Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare," NBER Chapters, in: Import Competition and Response, pages 223-244 National Bureau of Economic Research, Inc.
    13. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    14. Richard E. Caves, 1976. "Economic Models of Political Choice: Canada's Tariff Structure," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 278-300, May.
    15. Cassing, James H & Hillman, Arye L, 1986. "Shifting Comparative Advantage and Senescent Industry Collapse," American Economic Review, American Economic Association, vol. 76(3), pages 516-23, June.
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