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Capital Ownership and the Political Economy of Free Trade Agreements

Author

Listed:
  • Pyne, Derek

    (University of Waterloo)

Abstract

This article examines the political economy of free trade agreements. It assumes that, unlike labour, capital in two countries is owned and represented by the same lobby group. Using a Heckscher-Ohlin framework, factors affecting the likelihood of political parties and lobby groups supporting free trade agreements are investigated. The effects of free trade agreements on tariffs facing non-member countries are also examined.

Suggested Citation

  • Pyne, Derek, 2008. "Capital Ownership and the Political Economy of Free Trade Agreements," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 360-389.
    • Handle: RePEc:ris:integr:0438
    as

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    More about this item

    Keywords

    Trade agreements; Endogenous trade policy;

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • F10 - International Economics - - Trade - - - General

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