The Political Economy Of American Trade Policy (national Bureau Of Economic Research Project Report)

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Exploring the political and economic determinants of trade protection, this study provides a wealth of information on key American industries and documents the process of seeking and conferring protection.Eight analytical histories of the automobile, steel, semiconductor, lumber, wheat, and textile and apparel industries demonstrate that trade barriers rarely have unequivocal benefits and may be counterproductive. They show that criteria for awarding protection do not take into account the interests of consumers or other industries and that political influence and an organized lobby are major sources of protection.Based on these findings, a final essay suggests that current policy fails to consider adequately economic efficiency, the public good, and indirect negative effects. This volume will interest scholars in economics, business, and public policy who deal with trade issues.

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This Page Intentionally Left Blank The Political Economy of American Trade Policy A National Bureau of Economic Research Project Report The Political Economy of American Trade Policy Editedby Anne 0. Krueger The University of Chicago Press Chicago and London ANNE0. KRUEGER is professor of economics at Stanford University and a research associate of the National Bureau of Economic Research. The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London 0 1996 by the National Bureau of Economic Research All rights reserved. Published 1996 Printed in the United States of America 05040302010099989796 1 2 3 4 5 ISBN: 0-226-45489-4 (cloth) Library of Congress Cataloging-in-Publication Data The political economy of American trade policy / edited by Anne 0. Krueger. cm.-(A National Bureau of Economic Research project p. report) Includes bibliographical references and index. 1. United States-Commercial policy-Congresses. 2. Free tradeUnited States-Congresses. 3. Protectionism-United StatesCongresses. I. Krueger, Anne 0. 11. Series. HF1455.P537 1996 382’.3’0973-dc20 95-2 I949 CIP @ The paper used in this publication meets the minimum requirements of the American National Standard for Information Sciences-Permanence of Paper for Printed Library Materials, ANSI 239.48-1984. National Bureau of Economic Research Officers Paul W. McCracken, chairman John H. Biggs, vice-chairman Martin Feldstein, president and chief executive oficer Geoffrey Carliner, executive director Gerald A. Polansky, treasurer Sam Parker, director ofjinance and administration Directors at Large Peter C. Aldrich Elizabeth E. Bailey John H. Biggs Andrew Brimrner Carl E Christ Don R. Conlan Kathleen B. Cooper Jean A. Crockett George C. Eads Martin Feldstein George Hatsopoulos Karen N. Horn Lawrence R. Klein Leo Melamed Merton H. Miller Michael H. Moskow Robert T. Parry Peter G. Peterson Richard N. Rosett Bert Seidman Kathleen P. Utgoff Donald S. Wasserman Marina v.N. Whitman John 0. Wilson Directors by University Appointment Jagdish Bhagwati, Columbia William C. Brainard, Yale Glen G. Cain, Wisconsin Franklin Fisher, Massachusetts Institute of Technology Saul H . Hymans, Michigan Marjorie B. McElroy, Duke Joel Mokyr, Northwestern James L. Pierce, California, Berkeley Andrew Postlewaite, Pennsylvania Nathan Rosenberg, Stanford Harold T. Shapiro, Princeton Craig Swan, Minnesota Michael Yoshino, Harvard Arnold Zellner, Chicago Directors by Appointment of Other Organizations Marcel Boyer, Canadian Economics Association Mark Drabenstott, American Agricultural Economics Associution Richard A. Easterlin, Economic History Association Gail D. Fosler, The Conference Board A. Ronald Gallant, American Statistical Association Robert S . Hamadd, American Finance Association Charles Lave, Americ
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