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Protectionist demands in globalization

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Kibris, Arzu, Kibris, Özgür and Gurdal, Mehmet Yigit (2022) Protectionist demands in globalization. Review of Economic Design . doi:10.1007/s10058-021-00275-2 (In Press)

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Official URL: https://doi.org/10.1007/s10058-021-00275-2

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Abstract

We construct a game theoretic model that offers to explain the increase in trade protectionism as a rational reaction of the voters to their increased concern that the policy choices of their governments are being influenced by international actors. More specifically, we construct a small open economy in which the citizens declare their most preferred tariff rate on an import good to their government. While the government has incentive not to deviate too much from the publicly demanded tariff rate, its final decision is determined after bargaining with a foreign lobby which offers benefits to the government in return of lowered tariffs. We show that the expectation of such foreign influence affects the citizens’ voting behavior. Namely, they tend to vote for more protectionist policies. Moreover, this behavior leads to an increase in benefits by the foreign lobby to the government.

Item Type: Journal Article
Subjects: H Social Sciences > HF Commerce
J Political Science > JZ International relations
Divisions: Faculty of Social Sciences > Politics and International Studies
Library of Congress Subject Headings (LCSH): Protectionism, Protectionism -- Political aspects, Commercial policy, Internationalism, Globalization , Free trade
Journal or Publication Title: Review of Economic Design
Publisher: Springer
ISSN: 1434-4742
Official Date: 2022
Dates:
DateEvent
2022Published
2 December 2021Available
9 November 2021Accepted
DOI: 10.1007/s10058-021-00275-2
Status: Peer Reviewed
Publication Status: In Press
Publisher Statement: This is a post-peer-review, pre-copyedit version of an article published in Review of Economic Design. The final authenticated version is available online at: http://dx.doi.org/10.1007/s10058-021-00275-2
Access rights to Published version: Restricted or Subscription Access
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