Publication
Jan 2008
Typical explanations for why developing countries engage in welfare-reducing international economic cooperation focus on how international pressures can turn cooperation into a country's least-worst option. Using Argentina’s bilateral investment treaties as a case study, this paper finds that domestic politics also influence whether cooperation will be pursued. Specifically, welfare-reducing cooperation can result when economic elites are able to exert significant leverage over the state. In these circumstances, a high discount rate will be used to assess the short-term benefits and long-term costs of cooperation, in which case a country may willingly curtail their ability to develop using industrial policy.
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English (PDF, 37 pages, 216 KB) |
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Author | Laura Collinson |
Series | LSE International Development Working Papers |
Issue | 87 |
Publisher | LSE Department of International Development (ID) |
Copyright | ©2008 LSE |