@article{4e652aa44ba64dc0aa8d6f3e80778483,
title = "Reciprocated unilateralism in trade policy",
abstract = "Using the menu-auction approach to endogenous determination of tariffs and allowing additionally for lobby formation itself to be endogenous, this paper analyzes the impact of unilateral trade liberalization by one country on its partner's trade policies. We find that such unilateral liberalization may induce reciprocal tariff reductions by the partner country. Intuitively, unilateral liberalization by one country has the effect of increasing the incentives for the export lobby in the partner country to form and to lobby effectively against the import-competing lobby there for lower protection.",
keywords = "GATT, Lobby formation, Political economy, Reciprocity, Trade policy, Unilateralism",
author = "Pravin Krishna and Devashish Mitra",
note = "Funding Information: For helpful discussions and comments, we are very grateful to Jagdish Bhagwati, Elhanan Helpman, John McLaren, Dani Rodrick, Robert Staiger, two anonymous referees, and to seminar and conference participants at the Board of Governors of the Federal Reserve, Boston College, Brandeis University, University of British Columbia, Brown University, University of California at Irvine, Columbia University, University of Connecticut, Dartmouth, Florida International University, INSEAD, Korea Development Institute, New York University, University of Notre Dame, Syracuse University, Yale University, the NBER's 1999 Summer Institute in Cambridge, MA, the AEA's 2000 meetings in Boston, the Fall 1999 Mid-West International Economics Conference at the University of Illinois at Urbana-Champaign, the Fall 1999 Southeastern International Economics conference at Georgetown University and the Ford Foundation-American Enterprise Institute conference on “Unilateralism: The Case for Relaxed Reciprocity.” Pravin Krishna gratefully acknowledges the hospitality and the intellectual and financial support of the Center for Research on Economic Development and Policy Reform at Stanford University and the Research Department of the International Monetary Fund, where some of this research was conducted. ",
year = "2005",
month = mar,
doi = "10.1016/j.jinteco.2003.10.003",
language = "English (US)",
volume = "65",
pages = "461--487",
journal = "Journal of International Economics",
issn = "0022-1996",
publisher = "Elsevier",
number = "2",
}