| Title: | Trade Wars and Trade Talks |
| Author: |
Grossman, Gene M.; Helpman, Elhanan
Note: Order does not necessarily reflect citation order of authors. |
| Citation: | Grossman, Gene M., and Elhanan Helpman. 1995. Trade wars and trade talks. Journal of Political Economy 103(4): 675-708. |
| Full Text & Related Files: |
Helpman_TradeWars.pdf (539.9Kb; PDF)
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| Abstract: | Whether governments clash in trade disputes or negotiate over trade agreements, their actions in the international arena reflect political conditions back home. Previous studies of cooperative and non-cooperative trade relations have focused on governments that are immune from political pressures and act as benevolent servants of the public interest. Here we take a first step towards introducing domestic politics into the analysis of international economic relations. We study the interactions between national leaders who are concerned both with providing a high standard of living to the general electorate and collecting campaign contributions from special interest groups. The analysis reveals the determinants of the structure of protection in a non-cooperative trade war and in a cooperative trade agreement. |
| Published Version: | doi:10.1086/261999 |
| Terms of Use: | This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA |
| Citable link to this page: | http://nrs.harvard.edu/urn-3:HUL.InstRepos:3450062 |
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