Political Economy of American Trade Policy

the long version

Exploring the political and economic determinants of trade protection, this study provides a wealth of information on key American industries to document the process of seeking and conferring protection. In eight parallel analytical histories of the automobile, steel, semiconductor, lumber, wheat, and textile and apparel industries, the contributors demonstrate that trade barriers rarely have unequivocal benefits and may indeed be counterproductive in the long run. They also find that the political and administrative criteria for awarding protection do not take into account the interests of final consumers, other American industries, or foreign countries. Political influence and a well-organized lobby, they show, are major sources of protection. Also included is a cross-section study of the determinants of administered protection that sheds light on the overall political economy of protection. . A concluding essay integrates these findings and suggests that current protection practices fail to consider adequately economic efficiency, the public good, and a wide range of indirect negative economic effects. This volume will be of interest to scholars in economics, business, and public policy who are concerned with trade issues.