The Politico-Economic Determinants of Trade Protectionism: An Analysis of Demand and Supply in the Political Marketplace for Tariffs

Stella Luz Alabastro, Nancy Irlanda


This paper uses both an interest group model and a national policy model to determine political and economic factors that influence trade policy. Findings of this policy point to the importance of labor as a determinant of tariff structure. The study was conducted in the context of a unique Philippine trade culture known as "comprador capitalism." In light of this, results seem to confirm that the scarce factor, which in the Philippine case is capital, receives the greater factor returns in spite of labor having the interest.

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