Cross-border political donations and Pareto-efficient tariffs

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Lobbying activities across international borders could promote international trade policy cooperation because of two distinctive characteristics. First, special interest groups use cross-border donations as tools to wield their influence on ruling parties of other countries directly. Second, cross-border donations make ruling parties take into account the impact of their policy on other countries. They promote efficiency of policy formation. Pareto-efficient tariffs are attained under the conditions that all individuals participate in lobbying activities, ruling parties value the sum of cross-border donations and the sum of domestic gross welfare and domestic donations equally, and contribution schedules are observable to anyone.

Original languageEnglish
Pages (from-to)493-512
Number of pages20
JournalJournal of International Trade and Economic Development
Volume21
Issue number4
DOIs
Publication statusPublished - 2012 Aug 1

Keywords

  • domestic lobbying
  • tariffs
  • trade policy

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Aerospace Engineering

Fingerprint Dive into the research topics of 'Cross-border political donations and Pareto-efficient tariffs'. Together they form a unique fingerprint.

  • Cite this