Trade policies as signals of private political pressure

Hisashi Sawaki

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)


The situation of a home government facing political pressure from an exporting industry within its jurisdiction is considered. If a foreign government cannot directly observe such pressure, the home government has an incentive to understate it to induce foreign tariff reductions. In equilibrium, the home government will distort its first-period trade policy in a direction that the industry does not prefer (i.e. raising the export tax or reducing the export subsidy) in order to reveal the true pressure, as compared with a policy selected under complete information.

Original languageEnglish
Pages (from-to)878-889
Number of pages12
JournalReview of International Economics
Issue number5
Publication statusPublished - Nov 1 2007

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development


Dive into the research topics of 'Trade policies as signals of private political pressure'. Together they form a unique fingerprint.

Cite this