Cadot, Olivier; de Melo, Jaime; Olarreaga, Marcelo - C.E.P.R. Discussion Papers - 1998
This paper explores how political-economy forces shape quantitative barriers against the rest of the world in a FTA. We show that whereas the dilution of lobbying power in a FTA typically leads to a relaxation of external quotas, this result is likely to be overturned as integration deepens. In...