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Capital Ownership and the Political Economy of Free Trade Agreements

Capital Ownership and the Political Economy of Free Trade Agreements

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This article examines the political economy of free trade agreements. It assumes that, unlike labour, capital in two countries is owned and represented by the same lobby group. Using a Heckscher-Ohlin framework, factors affecting the likelihood of political parties and lobby groups supporting free trade agreements are investigated. The effects of free trade agreements on tariffs facing non-member countries are also examined.

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Analysis

Ⅳ. Conclusion

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