The Political Economy of Trade Policy: Empirical Approaches

Abstract

In order to explain the prevalence and persistence of trade protection, a large body of work that departs from the notion of welfare maximizing governments and emphasizes instead political-economic determinants of policy has recently emerged. This survey paper summarizes and evaluates analytically the empirical component of this literature. We discuss a broad set of empirical findings which provide a convincing confirmation of the presence and significance of political economy influences. We also discuss some puzzles and controversies that have emerged in recent work.

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