POLI 441 Lecture Notes - Lecture 5: Preferential Trading Area, Autocracy, Section 301 Of The Trade Act Of 1974
23 Nov 2017
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Document Summary
All politics, not completely distinct from the demand side. This is about how responsive governments are to citizen"s demands, and which demands they favor over others. The biggest cleavage, in this sense, is regime type (autocracy vs. democracy) Cooperation entails accepting bounds on one"s trade policy options in exchange of trade partners constraining their own trade policy. In practice, we are speaking of countries that join in bilateral, regional, and multilateral agreements. The greatest variation is found in preferential trade agreements (pta) This literature imagines 3 sets of actors: governments (on a continuum of democracy, voters (hold hetergeneous preferences) Assumption that preferences offered to special interests come at the expense of the median voter, ie. the economy as a whole. From the point of view of voters, institutions resovel an information problem of who to blame for bad economy. Institutions monitor state behavior, and sound an alarm when they see extractive policies.
