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Journal of Economic Integration 2008 June;23(2) :360-389.
DOI: https://doi.org/10.11130/jei.2008.23.2.360
Capital Ownership and the Political Economy of Free Trade Agreements
Derek Pyne 
University of Waterloo
Copyright ©2008 Journal of Economic Integration
ABSTRACT

This article examines the political economy of free trade agreements. It assumes that, unlike labour, capital in two countries is owned and represented by the same lobby group. Using a Heckscher-Ohlin framework, factors affecting the likelihood of political parties and lobby groups supporting free trade agreements are investigated. The effects of free trade agreements on tariffs facing non-member countries are also examined.

JEL classification: F1, D7

Keywords: Trade agreements | Endogenous trade policy
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