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Cross-border political donations and Pareto-efficient tariffs

Author

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  • Masahiro Endoh

Abstract

Lobbying activities across international borders could promote international trade policy cooperation because of two distinctive characteristics. First, special interest groups use cross-border donations as tools to wield their influence on ruling parties of other countries directly. Second, cross-border donations make ruling parties take into account the impact of their policy on other countries. They promote efficiency of policy formation. Pareto-efficient tariffs are attained under the conditions that all individuals participate in lobbying activities, ruling parties value the sum of cross-border donations and the sum of domestic gross welfare and domestic donations equally, and contribution schedules are observable to anyone.

Suggested Citation

  • Masahiro Endoh, 2012. "Cross-border political donations and Pareto-efficient tariffs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 493-512, July.
  • Handle: RePEc:taf:jitecd:v:21:y:2012:i:4:p:493-512
    DOI: 10.1080/09638199.2010.512391
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hayato Kato, 2017. "Lobbying and Tax Competition in an Oligopolistic Industry: A Reverse Home Market Effect," Keio-IES Discussion Paper Series 2017-028, Institute for Economics Studies, Keio University.
    2. Roberto Bonfatti, 2017. "An economic theory of foreign interventions and regime change," Canadian Journal of Economics, Canadian Economics Association, vol. 50(1), pages 306-339, February.
    3. Guriev, Sergei & Yakovlev, Evgeny & Zhuravskaya, Ekaterina, 2010. "Interest group politics in a federation," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 730-748, October.
    4. Joan Canton, 2009. "Environmentalists' Behaviour and Environmental Policies policies," Working Papers 2009.76, Fondazione Eni Enrico Mattei.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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