Lobbying, Multisector Trade, and Sustainability of Free-Trade Agreements

23 Pages Posted: 15 Oct 2004

See all articles by Larry D. Qiu

Larry D. Qiu

The University of Hong Kong - Faculty of Business and Economics; Hong Kong University of Science & Technology (HKUST) - Department of Economics

Abstract

This paper is concerned with the sustainability of free-trade agreements (FTA). FTA sustainability is influenced by governments' valuations of political contributions, discount factors, the lobbying position of the specific-interest groups in the intra-industry trade sectors, and the sectoral coverage of the FTA. I find that (i) under certain conditions, the FTA under protectionist lobbying could be more sustainable than the FTA under no political pressure; (ii) the lobby-supported FTA is more sustainable than the lobby-opposed FTA and the FTA under no political pressure; and (iii) multisector trade enhances FTA sustainability.

JEL Classification: F12, F13, F15

Suggested Citation

Qiu, Larry Dongxiao, Lobbying, Multisector Trade, and Sustainability of Free-Trade Agreements. Canadian Journal of Economics Vol. 37, No. 4, pp. 1061-1083, November 2004. Available at SSRN: https://ssrn.com/abstract=605133

Larry Dongxiao Qiu (Contact Author)

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

School of Economics and Finance
University of Hong Kong
Pokfulam
Hong Kong

HOME PAGE: http://www.bm.ust.hk/~larryqiu/

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