TY - JOUR ID - 4443 TI - Government’s Powers and FTAs: The Effect of Domestic and Foreign Powers on Multilateral Trade JO - Iranian Journal of Economic Studies JA - IJES LA - en SN - 2322-1402 AU - Ghiaie, Hamed AD - Department of Economics and Management, Université de Cergy-Pontoise, France Y1 - 2017 PY - 2017 VL - 5 IS - 1 SP - 7 EP - 29 KW - Free Trade Agreements KW - Political economy KW - power KW - External tariff DO - 10.22099/ijes.2017.15196.1183 N2 - This paper elaborates on the government's powers - both at the domestic level and over foreign countries. The domestic power is the power against domestic lobbies, and the foreign one is the government's international power. To do so, this paper tries to evaluate the effects of these powers   on the formation of free trade agreements (FTAs). The theoretical framework follows an oligopolistic-political economy. The main findings of the study show that the optimal solution for the government is paying more attention to the national welfare than lobbies' welfare. In addition, larger FTA helps the government have lower dependency on the lobbies. The paper indicates that the effects of foreign power on FTAs and shows that a larger FTA does not have always positive effects on expanding the FTAs. The effects depend on both domestic and foreign powers that are precisely described through this paper. The issues dealt here are not only theoretically interesting but are relevant while designing domestic and foreign policies. UR - https://ijes.shirazu.ac.ir/article_4443.html L1 - https://ijes.shirazu.ac.ir/article_4443_f4ec4d7907808cf5d5b9a8634892daeb.pdf ER -