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Who Gains from Tariff Escalation?

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  • Basudeb Guha-Khasnobis

Abstract

With the help of a simple model of production and trade, we examine the differential impact of tariff escalation on skilled and unskilled wages in an economy. Our findings provide a lobbying-based explanation of the prevalence of tariff escalation in developed countries. It also predicts the possible response of a developing country and shows how similar lobbying activity in that country can slow the pace of liberalization of service sector trade.

Suggested Citation

  • Basudeb Guha-Khasnobis, 2003. "Who Gains from Tariff Escalation?," WIDER Working Paper Series DP2003-62, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2003-62
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-062.pdf
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    References listed on IDEAS

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    1. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
    2. Martin,Will & Winters,L. Alan (ed.), 1996. "The Uruguay Round and the Developing Countries," Cambridge Books, Cambridge University Press, number 9780521586016.
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