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In this paper we argue that strong political economy forces explain the rush of the EU to expand eastwards. We use a model of vertical product differentiation in order to claim that technologically- advanced EU firms (residing in high-income member countries) prefer a mutual market-opening with...
Persistent link: https://www.econbiz.de/10011409769
In this paper we examine the empirical relevance of three prominent endogenous protection models. Is protection for sale, or do altruistic policy makers worry about political support? We find strong evidence that protection is indeed for sale. The important new result is, however, that not only...
Persistent link: https://www.econbiz.de/10011397792
The literature has paid very little attention to a potential positive endogenous nexus between trade globalization and political liberalization. In this paper, I apply a structural approach to investigate two-way causality between the two based on the gravity trade theory, using data from a...
Persistent link: https://www.econbiz.de/10003530911
This paper re-examines the determinants of trade policy. It modifies the Grossman-Helpman model of trade policy to take account of factors besides lobby contributions that may lead politicians to value rents differently across industries. The idea is motivated by the puzzling results of the...
Persistent link: https://www.econbiz.de/10012760898
This paper develops a new model of trade policy under dictatorship and democratization. The paper makes two contributions. One is to provide a deeper understanding of the relationship between political institutions and economic efficiency by studying the endogenous interaction between the form...
Persistent link: https://www.econbiz.de/10012945109
This paper develops a new model of trade policy under dictatorship and democratization. The paper makes two contributions. One is to provide a deeper understanding of the relationship between political institutions and economic efficiency by studying the endogenous interaction between the form...
Persistent link: https://www.econbiz.de/10011721779
In this paper, we create alternative measures of political instability, which capture movements only from dictatorship to democracy and vice versa (consistent with the recent theoretical work by Acemoglu and Robinson) but, unlike older, well known measures do not capture government changes that...
Persistent link: https://www.econbiz.de/10014064089
Economic sanctions are intended to cause pain to the target country or, in the case of smart sanctions, to particular individuals or groups. Over the years, two basic views have emerged on the ethics of employing economic sanctions. One view applies utilitarian ethics to justify sanctions while...
Persistent link: https://www.econbiz.de/10014037421
This paper re-examines the determinants of trade policy. It extends the Grossman-Helpman model of trade policy to take account of factors besides lobby contributions that may lead politicians to value rents differently across industries. The extension is motivated by the recent empirical finding...
Persistent link: https://www.econbiz.de/10014118413
This article addresses the question of whether sanctions constitute violence in the broad sense of that term, and whether, and under what conditions, sanctions can be justified. The sanctions imposed against Iraq and Cuba are discussed as case studies and several ethical theories are applied to...
Persistent link: https://www.econbiz.de/10013054135