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- W1986502040 abstract "This paper studies the political viabihty of free trade agreements (FTAs). The key element of the analysis is the “rent destruction” that these arrangements induce: by eliminating intrabloc trade barriers, an FT A lowers the incentives of import-competing industries to lobby for higher external tariffs, thereby inducing a reduction of the rents created in the lobbying process. Using a conventional competitive model, I show that the prospect of rent destruction can critically undermine (and in some cases rule out entirely) the political viability of welfare-reducing FTAs. This result contrasts sharply with findings from the earlier regionalism literature." @default.
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- W1986502040 date "2005-11-01" @default.
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- W1986502040 title "Rent Destruction and the Political Viability of Free Trade Agreements" @default.
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- W1986502040 doi "https://doi.org/10.1162/003355305775097560" @default.
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