Capital Ownership and the Political Economy of Free Trade Agreements

Posted: 31 Aug 2014

See all articles by Derek Pyne

Derek Pyne

Thompson Rivers University - School of Business and Economics

Date Written: 2008

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.

Keywords: Trade agreements, Endogenous trade policy

JEL Classification: F1, D7

Suggested Citation

Pyne, Derek, Capital Ownership and the Political Economy of Free Trade Agreements (2008). Journal of Economic Integration, Vol. 23, No. 2, 2008, Available at SSRN: https://ssrn.com/abstract=2481326

Derek Pyne (Contact Author)

Thompson Rivers University - School of Business and Economics ( email )

900 McGill Road
Kamloops, British Columbia V2C 0C8
Canada

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