Economics Seminar Series: Paola Conconi, Université Libre de Bruxelles and CEPR

Title: Globalization for Sale

2017.06.30 | Bodil Krog

Date Tue 28 Nov
Time 14:15 15:30
Location Fuglesangs Allé 4, 8210 Aarhus V, building 2632(L), room 242

Speaker: Paola Conconi, Université Libre de Bruxelles and CEPR

Title: Globalization for Sale (with Michael Blanga-Gubbay and Mathieu Parenti)

Abstract: We study the political economy of trade agreements with heterogeneous firms. We first uncover new stylized facts about lobbying on free trade agreements (FTAs). Using detailed information from lobbying reports on FTAs negotiated by the United States, we show that only large firms lobby individually, and always in favor of trade agreements. Moreover, lobbying firms are larger than non-lobbying firms and larger firms spend more on FTAs. To rationalize these findings, we develop a model in which large and small firms coexist in the same market and study their decision to lobby in favor or against a proposed FTA. In this setting, we show that small firms will never lobby. By contrast, large firms will lobby in favor of the agreement — and the magnitude of their contributions will increase in their size — if politicians are biased against it.

Organizers: Marcel Smolka and Jonas Maibom

Economics Seminar Series, Tuborg Research Centre Seminars