Rent-seeking and institutional stability in developing countries

We are grateful to Mark Toma, Gordon Tullock, Stephen Drew Smith, Bob Collinge and participants of the rent seeking panel held at the 1990 meetings of the Southern Economic Association for their helpful comments. Remaining errors are our responsibility.     

Book reviews

This paper analyzes recent free trade arrangements from a positive political economy perspective. In contrast to most other literature which fails to take into account geographical factors it is argued here that proximity and transportation costs play an important role in trade arrangements. Another important also largely neglected factor is the degree of social cohesion in terms of labor standards among potential trading partners. A political support maximizing government will consider these factors when balancing political support from free traders and protectionists.