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Market access for sale : Latin America's lobbying for U.S. tariff preferences

Author

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  • Kee, Hiau Looi
  • Olarreaga, Marcelo
  • Silva, Peri

Abstract

This paper assesses the foreign lobbying forces behind the tariff preferences that the United States grants to Latin American and Caribbean countries. The basic framework is the one developed that is extended to explain the relationship between foreign lobbying and tariff preferences. Results suggest that returns to Latin American and Caribbean exporters lobbying for tariff preferences in the United States are around 50 percent. The reason for these large returns is the relatively low estimated weight given to social welfare in the U.S. government's objective function when deciding whether or not to grant tariff preferences to Latin American and Caribbean exporters.

Suggested Citation

  • Kee, Hiau Looi & Olarreaga, Marcelo & Silva, Peri, 2004. "Market access for sale : Latin America's lobbying for U.S. tariff preferences," Policy Research Working Paper Series 3198, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3198
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    References listed on IDEAS

    as
    1. Kishore Gawande & Usree Bandyopadhyay, 2000. "Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 139-152, February.
    2. Devashish Mitra & Dimitrios D. Thomakos & Mehmet A. Ulubaşoğlu, 2016. "“Protection For Sale” In A Developing Country: Democracy Vs. Dictatorship," World Scientific Book Chapters, in: The Political Economy of Trade Policy Theory, Evidence and Applications, chapter 9, pages 163-174, World Scientific Publishing Co. Pte. Ltd..
    3. kishore gawande & pravin krishna, 2005. "The Political Economy of Trade Policy: Empirical Approaches," International Trade 0503003, University Library of Munich, Germany.
    4. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    5. Gawande, Kishore, 1997. "Generated regressors in linear and nonlinear models," Economics Letters, Elsevier, vol. 54(2), pages 119-126, February.
    6. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    7. Devashish Mitra, 2016. "Endogenous Lobby Formation and Endogenous Protection: A Long-Run Model of Trade Policy Determination," World Scientific Book Chapters, in: The Political Economy of Trade Policy Theory, Evidence and Applications, chapter 1, pages 3-21, World Scientific Publishing Co. Pte. Ltd..
    8. Olivier Cadot & Jaime de Melo & Marcelo Olarreaga, 2015. "The Protectionist Bias of Duty Drawbacks: Evidence from Mercosur," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 15, pages 359-380, World Scientific Publishing Co. Pte. Ltd..
    9. Kishore Gawande & Pravin Krishna & Michael J. Robbins, 2006. "Foreign Lobbies and U.S. Trade Policy," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 563-571, August.
    10. Dickins, William T, 1990. "Error Components in Grouped Data: Is It Ever Worth Weighting?," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 328-333, May.
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    Citations

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    Cited by:

    1. Gawande, Kishore & Maloney, William & Montes-Rojas, Gabriel, 2009. "Foreign informational lobbying can enhance tourism: Evidence from the Caribbean," Journal of Development Economics, Elsevier, vol. 90(2), pages 267-275, November.
    2. 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.
    3. 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.
    4. Burfisher, Mary E. & Robinson, Sherman & Thierfelder, Karen, 2004. "Regionalism," MTID discussion papers 65, International Food Policy Research Institute (IFPRI).
    5. Montes-Rojas, Gabriel V., 2013. "Can Poor Countries Lobby for More US Bilateral Aid?," World Development, Elsevier, vol. 44(C), pages 77-87.
    6. Charles F. Mason & Victoria I. Umanskaya & Edward B. Barbier, 2018. "Trade, Transboundary Pollution, and Foreign Lobbying," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 223-248, May.
    7. World Bank, 2005. "Bolivia : Country Economic Memorandum, Policies to Improve Growth and Employment," World Bank Publications - Reports 8399, The World Bank Group.
    8. repec:wbk:wbpubs:7460 is not listed on IDEAS

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    More about this item

    Keywords

    National Governance; Export Competitiveness; Environmental Economics&Policies; Rules of Origin; Economic Theory&Research; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; National Governance; Export Competitiveness; Environmental Economics&Policies; Poverty and Trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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