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

  title={Political Cleavages within Industry: Firm-level Lobbying for Trade Liberalization},
  author={In Song Kim},
  journal={American Political Science Review},
  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… 
New trade, new politics: intra-industry trade and domestic political coalitions
ABSTRACT Why are industries highly active in some battles over international trade policies, but in other instances, individual firms are highly active and industry groups are subdued? I argue that
The Breakdown of Industrial Opposition to Trade: Firms, Product Variety, and Reciprocal Liberalization
This article documents systematic deviations from standard models of trade politics, each of which has the effect of undermining sustained efforts at coherent industrial opposition to trade.
Differentiated Products, Divided Industries: Firm Preferences Over Trade Liberalization
The recent focus on firms in international trade suggests two conjectures about preferences over trade policy – only the most productive firms should support freer trade, and industries can be
Industry segmentation and the market for protection: Evidence from oil∗
Empirical work on the politics of trade increasingly emphasizes firm heterogeneity as a source of variation in trade policy preferences. Yet we have limited knowledge on when and how firm
Intra-industry Trade and Trade Liberalization : Evidence from Preferential Tariffs Data ∗ In
Does exchanging similar products within the same industry facilitate trade liberalization? While decades of theoretical research identified forceful political and economic reasons for open trade in
Globalization for Sale
We study the role of firms in the political economy of trade agreements. Using detailed information from lobbying reports filed under the Lobbying Disclosure Act, we find that virtually all firms
Firms’ Preferences over Multidimensional Trade Policies: Global Production Chains, Investment Protection and Dispute Settlement Mechanisms
In addition to the conventional focus on market access, recent trade agreements have included provisions related to other aspects of trade, such as investment protection, dispute settlement
The Service Economy: Understanding Sectoral Differences in Patterns of Lobbying for Trade in the United States
Despite the size of the service sector and the growth of services trade, the trade politics literature devotes little attention to service firms’ trade policy objectives and political activities. To
Trade Liberalization and Labor Market Institutions
Abstract While the firm-level distributional consequences of market liberalization are well understood, previous studies have paid only limited attention to how variations in domestic institutions
Trade policy in a “GVC World”: Multinational corporations and trade liberalization
Abstract The globalization of production is changing the political economy of trade policymaking: Traditional supporters of free trade (exporters seeking market access in foreign countries) are


Lobbying as a Private Good with Intra‐Industry Trade
Intra-industry trade—trade in different varieties of the same product between countries with similar factor endowments—has been an important and surprising feature of the postwar international
Differentiated Products , Divided Industries : A Theory of Firm Preferences over Trade Liberalization ∗ Iain Osgood
What firms support trade liberalization and when? The dominant approaches to trade politics imply that industries are united in support or opposition to trade. These approaches are based on an
Differentiated Products, Divided Industries: Firm Preferences Over Trade Liberalization
The recent focus on firms in international trade suggests two conjectures about preferences over trade policy – only the most productive firms should support freer trade, and industries can be
Competition and Political Organization: Together or Alone in Lobbying for Trade Policy
This paper employs a novel data set on lobbying expenditures to measure the degree of within-sector political organization and to explore the determinants of the mode of lobbying and political
Between free trade and protectionism: strategic trade policy and a theory of corporate trade demands
Conventional theories of the political economy of trade argue that industries in import-competing businesses favor protectionism, while multinational firms and export-dependent corporations advocate
Competition and bilateralism in trade policy: the case of Japan's free trade agreements
ABSTRACT Why do major economic powers seek more and more free trade agreements (FTAs) with smaller partners? Recently, Japan has joined the bandwagon by signing its first bilateral FTA. The decision,
From Protectionism to Regionalism: Multinational Firms and Trade-Related Investment Measures
  • K. Chase
  • Economics
    Business and Politics
  • 2004
Trade-related investment measures (TRIMs) have been a key issue in regional and multilateral trade negotiations, but they have received little attention in theoretical work to date. This article
Partisan Cycles in Offshore Outsourcing: Evidence from U.S. Imports
The wage and employment effects of offshoring roil politics in the United States and around the world. Firms that offshore either outsource their activities to unaffiliated businesses, or internalize
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
This paper develops a dynamic industry model with heterogeneous firms to analyze the intra-industry effects of international trade. The model shows how the exposure to trade will induce only the more
Firms in International Trade
For most of its lengthy history the field of international trade largely ignored the role of the firm in mediating the flow of goods and services. Traditional trade theory explained the flow of goods