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Journal of Economic Integration 2004 June;19(2) :416-425.
DOI: https://doi.org/10.11130/jei.2004.19.2.416
Who Gains From Tariff Escalation?
Basudeb Guha-Khasnobis 
United Nations University-World Institute , for Development Economics Research
Copyright ©2004 Journal of Economic Integration
ABSTRACT

With the help of a simple model of production and trade, we examine the differential impact of tariff escalation on skilled and unskilled wages in an economy. Our findings provide a lobbying-based explanation of the prevalence of tariff escalation in developed countries. It also predicts the possible response of the developing country and shows how similar lobbying activity in that country can slow the pace of liberalization of service sector trade.

JEL Classifications: F1, F11, F13

Keywords: Escalation | Tariff | Lobby | Developing country | WTO
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