Arbeitspapier
The Politics of Trade Liberalization in the Presence of FDI Incentives
This paper examines whether inward FDI incentives can soften the political constraints associated with trade liberalization. After introducing the role of capital inflows into the political economy of trade framework pioneered by Grossman and Helpman (1994, 1995 and 1996), the paper traces the effects of FDI incentives on the politically sustainable equilibrium level of trade protection. In particular, the paper shows that FDI incentives reduce the politically sustainable level of trade protection when capital-owners are politically organized, while they inhibit the process of trade liberalization when labor is the main influential political force. Welfare implications are also considered.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 00.09
- Classification
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Wirtschaft
- Subject
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Auslandsinvestition
Anreiz
Handelsliberalisierung
Theorie
- Event
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Geistige Schöpfung
- (who)
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Maechler, Andréa M.
- Event
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Veröffentlichung
- (who)
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Swiss National Bank, Study Center Gerzensee
- (where)
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Gerzensee
- (when)
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2000
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Maechler, Andréa M.
- Swiss National Bank, Study Center Gerzensee
Time of origin
- 2000
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