Interest Groups and Trade Policy: A Contemporary Classic in Economics

Author: Grossman
Publisher:
Publish Date: 2005-08-01
Features: Grossman and Helpman have conducted pioneering theoretical research on how interest groups in democratic societies seek to influence the policy-making process, earning widespread attention for their work. This book can be considered a companion to their recent monograph, The Politics of Special Interests. In their monograph, they clarify the origins of certain important ideas and demonstrate that their methodology can be applied to elucidate policy-making processes in significant areas. In the "Introduction" for this book, they outline its main content and its relationship to The Politics of Special Interests. Subsequently, they focus on analyzing campaign donations and candidate endorsements—two tools used by interest groups to influence policy outcomes. Finally, they apply these methods to trade policy issues. The analysis in the book explains tariff formation for large and small countries, the implementation of multilateral free trade agreements, and the feasibility of bilateral free trade agreements. It also examines the potential forms of regional and multilateral trade agreements, as well as the ways in which firms can invest abroad to overcome trade barriers induced by political pressure. This book is essential reading for any reader interested in international relations, trade policy, and political economy. It also demonstrates why Grossman and Helpman have become global leaders in the fields of international economics and political economy.