Lobbying, multisector trade, and sustainability of free-trade agreements
This paper is concerned with the sustainability of free-trade agreements (FTA). FTA sustainability is influenced by governments' valuations of political contributions, discount factors, the lobbying position of the specific-interest groups in the intra-industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby-supported FTA is more sustainable than the lobby-opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability.
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Volume (Year): 37 (2004)
Issue (Month): 4 (November)
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