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To Ban or Not to Ban: Foreign Lobbying and Cross-National Externalities

Author

Listed:
  • Toke S. Aidt
  • Uk Hwang

Abstract

This paper studies the costs and benefits of foreign lobbying. We show how and when foreign lobbying can help internalize crossnational externalities. We argue that this is an often overlooked benefit of foreign lobbying. We also study under what conditions a constitutional rule banning foreign lobbying is in the national interest of a country. A key factor in this calculus is whether the interests of foreign lobby groups and domestic unorganized groups coincide or not. We illustrate the logic with examples from trade policy and environmental regulation.

Suggested Citation

  • Toke S. Aidt & Uk Hwang, 2014. "To Ban or Not to Ban: Foreign Lobbying and Cross-National Externalities," Canadian Journal of Economics, Canadian Economics Association, vol. 47(1), pages 272-297, February.
  • Handle: RePEc:cje:issued:v:47:y:2014:i:1:p:272-297
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    Citations

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    Cited by:

    1. Mathilde Lebrand, 2016. "Profit Shifting and FDI Restrictions," CESifo Working Paper Series 5885, CESifo Group Munich.
    2. Thomas Groll & Anja Prummer, 2016. "Whom to Lobby? Targeting in Political Networks," Working Papers 808, Queen Mary University of London, School of Economics and Finance.
    3. Pierre Fauvet & Sébastien Rouillon, 2016. "Would you trust lobbies?," Public Choice, Springer, vol. 167(3), pages 201-219, June.
    4. repec:eee:jcecon:v:46:y:2018:i:1:p:157-173 is not listed on IDEAS
    5. Fünfgelt, Joachim & Schulze, Günther G., 2016. "Endogenous environmental policy for small open economies with transboundary pollution," Economic Modelling, Elsevier, vol. 57(C), pages 294-310.
    6. Yu-Bong Lai, 2016. "Does Tax Competition Reduce Corruption?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(4), pages 331-356, September.

    More about this item

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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