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Foreign Lobbying: A Theoretical Analysis

  • Steven Husted

    (University of Pittsburgh)

This paper uses general equilibrium modeling popularized by J. Bhagwati to explore the economic consequences of foreign financed lobbying in an open economy. It is shown that, unlike domestic lobbying, foreign lobbying need not be directly unproductive, at least in the country where the lobbying occurs. Under plausible conditions, foreign lobbying may even raise domestic welfare relative to free trade with no lobbying. Also included in the paper are some data on the level and types of foreign lobbying in the United States in 1984. Contrary to popular belief, these expenditures appear to be quite small relative to other trade flows and potential benefits.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume17/V17N1P89_99.pdf
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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 17 (1991)
Issue (Month): 1 (Jan-Mar)
Pages: 89-99

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Handle: RePEc:eej:eeconj:v:17:y:1991:i:1:p:89-99
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  1. Bhagwati, Jagdish N & Brecher, Richard A & Hatta, Tatsuo, 1985. "The Generalized Theory of Transfers and Welfare: Exogenous (Policy-imposed) and Endogenous (Transfer-induced) Distortions," The Quarterly Journal of Economics, MIT Press, vol. 100(3), pages 697-714, August.
  2. Bhagwati, Jagdish N & Srinivasan, T N, 1980. "Revenue Seeking: A Generalization of the Theory of Tariffs," Journal of Political Economy, University of Chicago Press, vol. 88(6), pages 1069-87, December.
  3. Hillman, Arye L & Ursprung, Heinrich W, 1988. "Domestic Politics, Foreign Interests, and International Trade Policy," American Economic Review, American Economic Association, vol. 78(4), pages 719-45, September.
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