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Journal of Economic Integration 2003 September;18(3) :506-529.
On the Lobbying Behavior Response to Political Asymmetries in International Economic Integration

I-Hui Cheng 

National University of Kaohsiung
Copyright ©2003 Journal of Economic Integration
The objective of this paper is to examine the effects of political asymmetries on a FTA and a CU. I have shown that either a higher lobbying sensitivity to the foreign firm or a more susceptibility of politicians to lobbying are sufficient to lead to a higher tariff protection at the individual country level. Under a CU, firms may dislike any form of political dominance in the common trade policy unless politicians do not discriminate against foreign lobbyists significantly. In contrast, under a FTA, if politicians are very susceptible to lobbying, the results appear to be ambiguous. JEL Classifications: D72, F13, F15
Keywords: K
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