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The sustainable cooperative tariffs : a political economy perspective

Author

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  • Racem Mehdi

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, ESSECT - Ecole Supérieure des Sciences Economiques et Commerciales de Tunis - Université de Tunis)

Abstract
The purpose of this paper is to examine the international trade cooperation in order to determine the sustainable cooperative tariff rates in a political economy perspective. This paper establishes a tariff-setting game among two countries as a two-phase game : negotiation phase and implementation phase. Our results show the following points. First, the sustainable cooperative tariff rate depends on the political weight placed by government on domestic import-competing industry, on the political influence of the foreign export industry and on the economic stakes of domestic tariff policy in these two sectors. Second, international cooperation is sustainable when governments involved in tariff negotiation are patient enough. Third, difference in patience affects the relative bargaining power of governments.

Suggested Citation

  • Racem Mehdi, 2008. "The sustainable cooperative tariffs : a political economy perspective," Post-Print halshs-00261577, HAL.
    • Handle: RePEc:hal:journl:halshs-00261577
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00261577
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    References listed on IDEAS

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    1. Bagwell, Kyle & Staiger, Robert W., 1997. "Multilateral tariff cooperation during the formation of customs unions," Journal of International Economics, Elsevier, vol. 42(1-2), pages 91-123, February.
    2. Bagwell, Kyle & Staiger, Robert W, 1997. "Multilateral Tariff Cooperation during the Formation of Free Trade Areas," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 291-319, May.
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    8. Furusawa, Taiji, 1999. "The negotiation of sustainable tariffs," Journal of International Economics, Elsevier, vol. 48(2), pages 321-345, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Trade negotiation; political economy; repeated game.; Négociation commerciale; économie politique; jeu répété.; repeated game;
    All these keywords.

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