This paper extends the influence-driven model of trade policy determination to include general equilibrium effects on the supply side resulting from labour-market interaction and intermediate goods. The model’s predictions for the structure of protection are related to underlying taste and technology parameters, and we derive analytically several propositions that are consistent with the stylized results of the empirical literature. Finally, numerical simulations are carried out for archetypal ‘rich’ and ‘poor’ economies. It turns out that the endogenously-determined structure of protection is broadly consistent with the observed pattern of protection in rich and poor economies, suggesting the usefulness of the approach.
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
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
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
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1574.
Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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.)