Domestic Interest Group Theory Essay by Mohammas

Domestic Interest Group Theory
This paper discusses whether domestic interest groups are the principal explanation for the international economic policies adopted by countries. This paper is relevant to political economy, international relations, and political science studies.
# 57467 | 2,166 words | 17 sources | MLA | 2005 | AE

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This paper shows that domestic interest groups are not the principal explanation of foreign economic policies. There are other variables that are relatively important, such as domestic state actors, domestic institutions, and internationalization. First, the paper reviews the domestic interest group explanation, highlighting its explanatory strength and weakness. Second, the paper demonstrates that there is a domestic political process behind the formation of international economic policies, in which state actors and institutions play important roles. Third, the paper discusses the effects of internationalization on domestic politics and mentions the Putnam two-level game as a framework to move beyond the state-societal and domestic-international distinctions that give primacy to one explanatory factor. Prior to concluding remarks, the paper also notes the influence of exogenous factors, in particular, major crises. Finally, the paper provides concluding remarks.

From the Paper:

"Political coalitions and cleavages could form based on factoral, sectoral or firm based interests. Ronald Rogowski (1989) grounds his analysis in the Stolper-Samuelson model to argue that factors that gain and lose from international trade flows form distinct political coalitions that mark the political cleavages domestically. Therefore the level of trade, given endowments of labor, land and capital, generate predictable shifts in the domestic political cleavages. Jeffry Frieden (1991) and Peter Gourevitch (1986) provide specific factor models in which coalitions are based on sectors rather than factors of production. Politics will pit towards cleavages such as those between producers of nontradables and tradables or multinational and national firms. Coalitions can also rest on firm interests and their convergence with one another. Helen Milner (1988) argues that different degrees of export dependence by firms affect preferences towards international foreign policies."

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