Who Gains From Tariff Escalation? |
Basudeb Guha-Khasnobis, |
United Nations University-World Institute , for Development Economics Research |
Copyright ©2004 The 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
|
|
|
|
|