Political Cleavages within Industry: Firm-level Lobbying for Trade Liberalization

@article{Kim2017PoliticalCW,
  title={Political Cleavages within Industry: Firm-level Lobbying for Trade Liberalization},
  author={In Song Kim},
  journal={American Political Science Review},
  year={2017},
  volume={111},
  pages={1 - 20}
}
  • In Song Kim
  • Published 1 February 2017
  • Economics
  • American Political Science Review
Existing political economy models explain the politics of trade policy using inter-industry differences. However, this article finds that much of the variation in U.S. applied tariff rates in fact arises within industry. I offer a theory of trade liberalization that explains how product differentiation in economic markets leads to firm-level lobbying in political markets. High levels of product differentiation eliminates the collective action problem faced by exporting firms while import… 
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