Political Economy Commons^™

New Trade, New Politics: Intra-Industry Trade And Domestic Political Coalitions, Mary Anne Madeira

Publications and Research

Why are industries highly active in some battles over international trade policies, but in other instances, individual firms are highly active and industry groups are subdued? I argue that rising intra-industry trade in the postwar period has undermined traditional trade coalitions and created new opportunities for individual firms to become politically active. Drawing on new trade theories from economics, as well as work on firm heterogeneity and lobbying, I argue that industry associations become less active as intra-industry trade increases due to competing trade preferences among member firms. At the same time, individual firms become more politically active. My results …