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This paper presents a theory of trade agreements where "politics" play an central role. This stands in contrast with … the standard theory, where even politically-motivated governments sign trade agreements only to deal with terms …
Persistent link: https://www.econbiz.de/10013220537
This paper presents a theory of trade agreements where "politics" play an central role. This stands in contrast with … the standard theory, where even politically-motivated governments sign trade agreements only to deal with terms …
Persistent link: https://www.econbiz.de/10012466956
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I study how political competition affects the feasibility of free trade agreements (FTAs). I show that the possibility of political turnover creates strategic motivations for the formation of FTAs. Specifically, a government facing a high enough probability of losing power will have an incentive...
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