The Political Economy of Trade Policy: Empirical Approaches

Gawande, Kishore; Krishna, Pravin

doi:10.1002/9780470756461.ch8

Cited by 129 publications

(119 citation statements)

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“…Several studies have documented the role of lobbying groups in influencing trade policy outcomes. For a review of this empirical literature, see Gawande and Krishna (2003).…”

Section: Discussionmentioning

confidence: 99%

The Openness of National Economies: The World and Russia

Оболенский¹

2017

WEIR

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“…Several studies have documented the role of lobbying groups in influencing trade policy outcomes. For a review of this empirical literature, see Gawande and Krishna (2003).…”

Section: Discussionmentioning

confidence: 99%

The Openness of National Economies: The World and Russia

Оболенский¹

2017

WEIR

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“…In this paper, the author develops a framework featuring Dixit-Stiglitz like differentiated goods sectors and analyzes the effects that this market structure has on the trade policy outcome of the lobbying 7 Similar results have been found also by Facchini et al (2006). For a different approach on how to deal with this issue, see Mitra et al (2006 We address the first problem by instrumenting the share of imports from China and India with their share in world trade by product, and the capital-labor ratio of the United States in each industry.…”

mentioning

confidence: 99%

Substitutability and Protectionism: Latin America's Trade Policy and Imports from China and India

Facchini¹,

Olarreaga²,

Silva³

et al. 2010

The World Bank Economic Review

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This paper examines the trade policy response of Latin American governments to the rapid growth of China and India in world markets. To explain higher protection in sectors where a large share is imported from these countries, we extend the 'protection for sale' model to allow for different degrees of substitutability between domestically produced and imported varieties. The extension suggests that higher levels of protection towards Chinese goods can be explained by high substitutability between domestically produced goods and Chinese goods, whereas lower levels of protection towards goods imported from India can be explained by low substitutability with domestically produced goods. The data supports the extension to the 'protection for sale' model, which performs better than the original specification in terms of explaining Latin America's structure of protection. JEL classification numbers: F10, F11, F13

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“…To fully understand FTAs, it is important to open the black box of the political economy of FTA formation. Where theories deliver empirically testable predictions, there are two main branches in the literature of the political economy of trade policy (Gawande and Krishna, 2003). The first branch represents direct democracy or median voter approach with the implicit assumption that voters vote directly upon trade policy or government chooses trade policy according to majority opinions (general interest).…”

Section: Introductionmentioning

confidence: 99%