Interests, Institutions, and Ideology in the Republican Conversion to Trade Liberalization, 1934-1945
AbstractThis paper investigates the factors explaining significant policy change by studying how bipartisan support developed to sustain the Reciprocal Trade Agreements Act (RTAA) of 1934. The RTAA fundamentally transformed both the process and outcome of U.S. trade policy: Congress delegated its authority over tariff-setting to the president sharply toward trade liberalization. The durability of this change was achieved only when the Republicans, long-time supporters of high tariffs who originally vowed to repeal the RTAA, began to support this Democratic initiative in the 1940s. In seeking to explain this conversion, we find little evidence of an ideological shift among Republicans, but rather an increased sensitivity to export interests for which the institutional structure of the RTAA itself may have been responsible. Our results suggest that analyzing changes in both institutional incentives and economic interests are important for understanding lasting change in economic policy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6112.
Date of creation: Jul 1997
Date of revision:
Note: DAE ITI
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Douglas A. Irwin & Randall S. Kroszner, 1997. "Interests, Institutions, and Ideology in the Republican Conversion to Trade Liberalization, 1934-1945," University of Chicago - George G. Stigler Center for Study of Economy and State 137, Chicago - Center for Study of Economy and State.
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
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.:
- Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-64, August.
- Goldstein, Judith, 1988. "Ideas, institutions, and American trade policy," International Organization, Cambridge University Press, vol. 42(01), pages 179-217, December.
- Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
- Irwin, Douglas A, 1998. "Change in U.S. Tariffs: The Role of Import Prices and Commercial Policies," American Economic Review, American Economic Association, vol. 88(4), pages 1015-26, September.
- Randall S. Kroszner & Thomas Stratmann, 1996.
"Interest Group Competition and the Organization of Congress:Theory And Evidence from Financial Services Political Action Committees,"
University of Chicago - George G. Stigler Center for Study of Economy and State
126, Chicago - Center for Study of Economy and State.
- Kroszner, Randall S & Stratmann, Thomas, 1998. "Interest-Group Competition and the Organization of Congress: Theory and Evidence from Financial Services' Political Action Committees," American Economic Review, American Economic Association, vol. 88(5), pages 1163-87, December.
- Randall S. Kroszner & Thomas Stratmann, 1998. "Interest Group Competition and the Organization of Congress: Theory and Evidence from Financial Services' Political Action Committees," CRSP working papers 349, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Randall S. Kroszner & Thomas Stratmann, . "Interest Group Competition and the Organization of Congress: Theory and Evidence from Financial Services', Political Action Committees," CRSP working papers 465, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Bender, Bruce & Lott, John R, Jr, 1996. " Legislator Voting and Shirking: A Critical Review of the Literature," Public Choice, Springer, vol. 87(1-2), pages 67-100, April.
- Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
- Fordham, Benjamin O., 1998. "Economic Interests, Party, and Ideology in Early Cold War Era U.S. Foreign Policy," International Organization, Cambridge University Press, vol. 52(02), pages 359-396, March.
- Krishna Srinivasan, 1997. "An Empirical Analysis of the Political Economy of Tariffs," Economics and Politics, Wiley Blackwell, vol. 9(1), pages 55-70, 03.
- Robert E. Baldwin, 1984. "The Changing Nature of U.S. Trade Policy since World War II," NBER Chapters, in: The Structure and Evolution of Recent U.S. Trade Policy, pages 5-32 National Bureau of Economic Research, Inc.
- Randall S. Kroszner, 1998. "On the political economy of banking and financial regulatory reform in emerging markets," Proceedings 605, Federal Reserve Bank of Chicago.
- North, D.C., 1990. "A Transaction Cost Theory of Politics," Papers 144, Washington St. Louis - School of Business and Political Economy.
- Peltzman, Sam, 1984. "Constituent Interest and Congressional Voting," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 181-210, April.
- Federico Sturzenegger & Mariano Tommasi (ed.), 1998. "The Political Economy of Reform," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262194007, January.
- Poole, Keith T. & Rosenthal, Howard, 1996. "Are legislators ideologues or the agents of constituents?," European Economic Review, Elsevier, vol. 40(3-5), pages 707-717, April.
- Jennifer Tobin & Susan Rose-Ackerman, 2003. "Foreign Direct Investment and the Business Environment in Developing Countries: the Impact of Bilateral Investment Treaties," William Davidson Institute Working Papers Series 587, William Davidson Institute at the University of Michigan.
- Lei (Sandy) Ye, 2007. "U.S. Trade Policy and the Pacific Rim, from Fordney-McCumber to the Trade Expansion Act of 1962: A Political-Economic Analysis," Discussion Papers 07-001, Stanford Institute for Economic Policy Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.