Litigation for Sale: Private Firms and WTO Dispute Escalation

September 29, 2017 Noon Millikan Room, E53-482

ABSTRACT:  This paper presents a theory of lobbying by firms for trade liberalization, not through political contributions, but instead through contributions to the litigation process at the World Trade Organization.  In this ``litigation for sale'' model, firms signal information about the strength and value of potential cases, and the government selects cases based on firms' signals. Firms play a key role in monitoring and seeking enforcement of international trade law, which increases a state's ability to pursue the removal of trade barriers and helps explain the high success rate for WTO complainants. The theory's implications are consistent with interviews with trade experts and are tested against competing theories of direct political lobbying through an analysis of WTO dispute initiation.   Visit the IPE homepage for full paper.

International Political Economy Speaker Series