Year: 1993
Type: report
Abstract: Suppose that an opportunity arises for two countries to negotiate a free trade agreement (FTA).Will an FTA between these countries be politically viable?And if so, what form will it take?We address these questions using a political-economy framework that emphasizes the interaction between industry special interest groups and an incumbent government.We describe the economic conditions necessary for an FTA to be an equilibrium outcome, both for the case when the agreement must cover all bilateral trade and when a few, politically sensitive sectors can be excluded from the agreement.
DOI: 10.3386/w4597
Authors: Gene Grossman, Elhanan Helpman
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3121319080