IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v6y1994i3p215-232.html
   My bibliography  Save this article

Endogenous Trade Policy: A Time‐Series Approach

Author

Listed:
  • Martín Rama

Abstract

This paper provides a time‐series analysis on the relationship between the extent of endogenous trade policy and both political and economic variables. The chosen trade policy indicator is the number of foreign‐trade regulations passed each year for the benefit of a single firm or industry. The data are from Uruguay, 1925–1983. This country, which experienced an impressive economic decline, is an outstanding example of the rent‐seeking society. The paper shows that endogenous regulations increased with discretionary policies, with adverse macroeconomic shocks and under dictatorship. It also shows that these regulations had a negative long‐run effect on the growth rates of output and exports. The short‐run effect was positive however.

Suggested Citation

  • Martín Rama, 1994. "Endogenous Trade Policy: A Time‐Series Approach," Economics and Politics, Wiley Blackwell, vol. 6(3), pages 215-232, November.
    • Handle: RePEc:bla:ecopol:v:6:y:1994:i:3:p:215-232
    DOI: 10.1111/j.1468-0343.1994.tb00098.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0343.1994.tb00098.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1468-0343.1994.tb00098.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bhagwati, Jagdish N, 1982. "Directly Unproductive, Profit-seeking (DUP) Activities," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 988-1002, October.
    2. Magee,Stephen P. & Brock,William A. & Young,Leslie, 1989. "Black Hole Tariffs and Endogenous Policy Theory," Cambridge Books, Cambridge University Press, number 9780521377003, Enero.
    3. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
    4. Terrones, M., 1990. "Influence Activities and Economic Growth," University of Western Ontario, Departmental Research Report Series 9006, University of Western Ontario, Department of Economics.
    5. Amelung, Torsten, 1989. "The Determinants of Protection in Developing Countries: An Extended Interest-Group Approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 42(4), pages 515-532.
    6. Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August.
    7. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    8. repec:bla:kyklos:v:42:y:1989:i:4:p:515-32 is not listed on IDEAS
    9. Baldwin, Robert E, 1989. "The Political Economy of Trade Policy," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 119-135, Fall.
    10. Rama, Martin, 1993. "Rent seeking and economic growth : A theoretical model and some empirical evidence," Journal of Development Economics, Elsevier, vol. 42(1), pages 35-50, October.
    11. Drazen, Allan & Grilli, Vittorio, 1993. "The Benefit of Crises for Economic Reforms," American Economic Review, American Economic Association, vol. 83(3), pages 598-607, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. César Calderón & Alberto Chong, 2006. "Rent Seeking and Democracy in Latin America: What Drives What?," Research Department Publications 4435, Inter-American Development Bank, Research Department.
    2. Paldam, Martin, 1997. "Dutch disease and rent seeking: The Greenland model," European Journal of Political Economy, Elsevier, vol. 13(3), pages 591-614, September.
    3. Cesar Calderon & Alberto Chong, 2006. "Do Democracies Breed Rent-seeking Behavior?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(4), pages 247-260.
    4. Michael Hoffman, 2005. "Discretion, Lobbying, and Political Influence in Models of Trade Policy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 8(3), pages 175-188.
    5. César Calderón & Alberto Chong, 2007. "Rent Seeking And Democracy: Empirical Evidence For Uruguay," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 592-601, July.
    6. César Calderón & Alberto Chong, 2006. "Búsqueda de rentas y democracia en América Latina: ¿Qué impulsa a qué?," Research Department Publications 4436, Inter-American Development Bank, Research Department.
    7. Madani, Dorsati & Olarreaga, Marcelo, 2002. "Politically optimal tariffs : an application to Egypt," Policy Research Working Paper Series 2882, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rama, Martin, 1993. "Rent - seeking trade policy : a time series approach," Policy Research Working Paper Series 1142, The World Bank.
    2. Bin, Sheng, 2000. "The Political Economy of Trade Policy in China," Working Papers 10/2000, Copenhagen Business School, Department of Management, Politics & Philosophy.
    3. Andrea Asoni, 2008. "Protection Of Property Rights And Growth As Political Equilibria," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 953-987, December.
    4. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    5. Gundlach, Erich, 1993. "Determinanten des Wirtschaftswachstums: Hypothesen und empirische Evidenz," Open Access Publications from Kiel Institute for the World Economy 1583, Kiel Institute for the World Economy (IfW Kiel).
    6. Weck-Hannemann, Hannelore, 1990. "Politische Ökonomie des Protektionismus: Ein institutioneller Ansatz," Discussion Papers, Series II 109, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    7. Roe, Terry L. & Graham-Tomasi, Theodore, 1990. "Competition Among Rent Seeking Groups in General Equilibrium," Bulletins 7483, University of Minnesota, Economic Development Center.
    8. Oldřich Krpec & Vladan Hodulák, 2012. "Politická ekonomie zahraniční obchodní politiky - instituce, regulace, sociální a politický kontext [Political Economy of Trade Policy - Institutions, Regulation, Social and Political Context]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(1), pages 20-39.
    9. Mo, Pak Hung, 2011. "Institutions, Entrepreneurship and Channels to Sustained Economic Growth," MPRA Paper 28911, University Library of Munich, Germany.
    10. Johannes Fedderke, 2001. "Growth and institutions," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(6), pages 645-670.
    11. Aisha Ismail & Kashif Rashid, 2014. "Time series analysis of the nexus among corruption, political instability and judicial inefficiency in Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2757-2771, September.
    12. Sami Fethi & Hatice Imamoglu, 2021. "The impact of rent‐seeking on economic growth in the six geographic regions: Evidence from static and dynamic panel data analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5349-5362, October.
    13. Elert, Niklas & Henrekson, Magnus, 2017. "Entrepreneurship and Institutions: A Bidirectional Relationship," Working Paper Series 1153, Research Institute of Industrial Economics, revised 05 May 2017.
    14. Rogers, Mark Llewellyn, 2008. "Directly unproductive schooling: How country characteristics affect the impact of schooling on growth," European Economic Review, Elsevier, vol. 52(2), pages 356-385, February.
    15. Nunn, Nathan, 2007. "Historical legacies: A model linking Africa's past to its current underdevelopment," Journal of Development Economics, Elsevier, vol. 83(1), pages 157-175, May.
    16. Josh Ederington & Jenny Minier, 2003. "Is environmental policy a secondary trade barrier? An empirical analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 36(1), pages 137-154, March.
    17. de Meulemeester, Jean-Luc & Rochat, Denis, 1995. "A causality analysis of the link between higher education and economic development," Economics of Education Review, Elsevier, vol. 14(4), pages 351-361, December.
    18. Robert Tollison, 2012. "The economic theory of rent seeking," Public Choice, Springer, vol. 152(1), pages 73-82, July.
    19. Benabou, R., 1992. "Heterogeneity, Stratification, and Growth," Working papers 93-4, Massachusetts Institute of Technology (MIT), Department of Economics.
    20. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecopol:v:6:y:1994:i:3:p:215-232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.