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The Political Economy of Trade Preferences
Author(s) -
Devault James M.
Publication year - 2005
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/byi021
Subject(s) - grossman , beneficiary , economics , product (mathematics) , politics , microeconomics , set (abstract data type) , public economics , finance , political science , law , geometry , mathematics , computer science , keynesian economics , programming language
This articles tests the implications the Grossman and Helpman “protection for sale” model. The goal is to address some of the problems associated with previous empirical studies. These problems are addressed using a data set derived from decisions reached by the president in cases involving product or beneficiary eligibility under the Generalized System of Preferences. The results provide some support for the Grossman and Helpman model, but they also indicate that factors not accounted for in this model play an important role in GSP eligibility decisions. (JEL F13 , F14 )