The Political Economic Analysis of U.S. Trade and Investment Policy

摘要

Free trade and investment policy is the best for the whole economy, but there are still various protective measures to constraint free trade and investment. This study reviews the theory and empirics to explain this paradox. The process of policy making is like a market of policy demand and policy supply, and interest groups promote the formation of protective trade and investment policy. This explanation is well justified in the U.S. trade and investment data.