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A Quantile-based Test of Protection for Sale Model

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Abstract

This paper proposes a new test of the Protection for Sale (PFS) model by Grossman and Helpman (1994). Unlike existing methods in the literature, our approach does not require any data on political organization. We use quantile and IV quantile regressions to do so using the data from Gawande and Bandyopadhyay (2000). Surprisingly, the results do not provide any evidence favoring the PFS model. We also explain why previous work may have inadvertently found support for it.

Suggested Citation

  • Susumu Imai & Hajime Katayama & Kala Krishna, 2013. "A Quantile-based Test of Protection for Sale Model," Working Paper Series 12, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
    • Handle: RePEc:uts:ecowps:12
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    Cited by:

    1. Julien Vauday, 2008. "Heterogeneous lobbying efficiency," Documents de travail du Centre d'Economie de la Sorbonne bla08053, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Anne-Célia Disdier & Frank van Tongeren, 2010. "Non-Tariff Measures in Agri-Food Trade: What Do the Data Tell Us? Evidence from a Cluster Analysis on OECD Imports," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 436-455.
    3. Jenq-Tzong Shiau & Jia-Wei Lin, 2016. "Clustering Quantile Regression-Based Drought Trends in Taiwan," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(3), pages 1053-1069, February.
    4. Andrey Stoyanov, 2016. "Regional Trade Agreements and Cross-border Lobbying: Empirical Evidence from the Canada–US Free Trade Agreement Negotiations," Review of International Economics, Wiley Blackwell, vol. 24(1), pages 126-149, February.
    5. Lorz, Oliver & Thede, Susanna, 2024. "Tariff overhang and aid: Theory and empirics," Journal of Development Economics, Elsevier, vol. 166(C).
    6. Vincent Rebeyrol & Julien Vauday, 2008. "Live or let die: intra-sectoral lobbying on entry," Documents de travail du Centre d'Economie de la Sorbonne bla08036, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    7. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Protection for sale or surge protection?," European Economic Review, Elsevier, vol. 53(6), pages 675-688, August.
    8. Andrew Jonelis & Wisarut Suwanprasert, 2022. "Protection for sale: evidence from around the world," Public Choice, Springer, vol. 191(1), pages 237-267, April.
    9. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2013. "A quantile-based test of protection for sale model," Journal of International Economics, Elsevier, vol. 91(1), pages 40-52.
    10. Amèvi Rocard Kouwoaye, 2021. "GATT/WTO membership–poverty nexus: An unconditional quantile regression approach," The World Economy, Wiley Blackwell, vol. 44(11), pages 3389-3421, November.
    11. Imai, Susumu & Katayama, Hajime & Krishna, Kala, 2009. "Is protection really for sale? A survey and directions for future research," International Review of Economics & Finance, Elsevier, vol. 18(2), pages 181-191, March.

    More about this item

    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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