Free Trade Areas and the Construction of an Efficient Mechanism to Satisfy Industrialization Targets
Da Silva, Peri Agostinho, Jr
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https://hdl.handle.net/2142/85555
Description
Title
Free Trade Areas and the Construction of an Efficient Mechanism to Satisfy Industrialization Targets
Author(s)
Da Silva, Peri Agostinho, Jr
Issue Date
2005
Doctoral Committee Chair(s)
Grinols, Earl L.
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, General
Language
eng
Abstract
The third essay investigates the role played by domestic importers and foreign exporters in improving preferential access to the domestic market. To this end, the framework used in this essay extends the protection for sale analysis to explicitly model the role of domestic importers and foreign exporters in the determination of preferential trade treatment. The predictions of the model are tested using data on preferential trade between the United States and Latin American countries. The results suggest that Latin American exporters and US importers' lobbying efforts have a significant, and important role in determining the extent of preferential access granted by the United States. More interestingly, these findings also show that U.S. importers capture a very substantial share of the rents generated by tariff preferences.
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