TY  - JOUR
AU  - Krishna,Pravin
AU  - Mitra,Devashish
TI  - Reciprocated Unilateralism in Trade Policy: An Interest-Group Approach
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9631
PY  - 2003
Y2  - April 2003
UR  - http://www.nber.org/papers/w9631
L1  - http://www.nber.org/papers/w9631.pdf
N1  - Author contact info:
Pravin Krishna
Johns Hopkins University
1740 Massachusetts Avenue, NW
Washington, DC 20036
Tel: 202/663 5733
Fax: 202/663 7718
E-Mail: Pravin_Krishna@jhu.edu

Devashish Mitra
Department of Economics
The Maxwell School of Citizenship and
Public Affairs
133, Eggers Hall, Syracuse University
Syracuse, NY  13244
Tel: 315/443-6143
Fax: 315/443-3717
E-Mail: dmitra@maxwell.syr.edu
AB  - Using the menu-auction approach to endogenous determination of tariffs and allowing additionally for lobby formation itself to be endogenous, this paper analyzes the impact of unilateral trade liberalization by one country on its partner's trade policies. We find that such unilateral liberalization may induce reciprocal tariff reductions by the partner country. Intuitively, unilateral liberalization by one country has the effect of increasing the incentives for the export lobby in the partner country to form and to lobby effectively against the import-competing lobby there for lower protection.
ER  -