NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Politics of Free Trade Agreements

Gene M. Grossman, Elhanan Helpman

NBER Working Paper No. 4597
Issued in December 1993
NBER Program(s):   ITI

Suppose that an opportunity arises for two countries to negotiate a free trade agreement (FTA). Will an FTA between these countries be politically viable? And if so, what form will it take? We address these questions using a political-economy framework that emphasizes the interaction between industry special interest groups and an incumbent government. We describe the economic conditions necessary for an FTA to be an equilibrium outcome, both for the case when the agreement must cover all bilateral trade and when a few, politically sensitive sectors can be excluded from the agreement.

download in pdf format
   (599 K)

email paper

This paper is available as PDF (599 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4597

Published: American Economic Review, vol. 85, 1995, pp. 667-690 citation courtesy of

Users who downloaded this paper also downloaded these:
Urata and Kiyota The Impacts of an East Asia Free Trade Agreement on Foreign Trade in East Asia
Rodrik w3947 The Rush to Free Trade in the Developing World: Why So Late? Why Now? Will it Last?
Whalley Why Do Countries Seek Regional Trade Agreements?
Grossman and Helpman w4149 Protection For Sale
Krueger w4352 Free Trade Agreements as Protectionist Devices: Rules of Origin
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us