The Politics of Free Trade Agreements
Suppose that an opportunity arises for two countries to negotiate a free-trade agreement. Will a free-trade agreement between these countries be politically viable and, if so, what form will it take? The authors address these questions using a political-economy framework that emphasizes the interaction between industry special-interest groups and an incumbent government. They describe the economic conditions necessary for a free-trade agreement to be an equilibrium outcome, both for the case when the agreement must cover all bilateral trade and for the case when a few politically sensitive sectors can be excluded from the agreements. Copyright 1995 by American Economic Association.
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|Date of creation:||1993|
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"Trade Wars and Trade Talks,"
Journal of Political Economy,
University of Chicago Press, vol. 103(4), pages 675-708, August.
- Grossman, G.M. & Helpman, E., 1992. "Trade Wars and Trade Talks," Papers 163, Princeton, Woodrow Wilson School - Public and International Affairs.
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- Grossman, Gene M. & Helpman, Elhanan, 1995. "Trade Wars and Trade Talks," Scholarly Articles 3450062, Harvard University Department of Economics.
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- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
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