The Political Economy of Trade Barriers in Peru

Authors

DOI:

https://doi.org/10.19053/01203053.v41.n74.2022.13961

Keywords:

tariffs, non-tariff barriers, political economy, Ministry of Economy and Finance, Peru

Abstract

This paper analyzes the political economy factors and actors that may have influenced trade instruments in Peru during the liberalization period of 2001-2015 (which started in 1990 under Fujimori’s administration). The evidence supports the hypothesis that Peruvian trade barriers liberalization in period 2000-2015 was led by the powerful “Ministry of Economy and Finance (MEF)”, accompanied by traditional and diversified exporters (that consolidated the unilateral trade liberalization) and by import substitution firms that influenced to some degree, and slowed down the rate of liberalization of unilateral trade barriers. In addition, the unilateral trade liberalization was facilitated by the weak role of the formal labor force and liberal-oriented consumer interest groups.

Downloads

Download data is not yet available.

Author Biography

Mario Tello Pacheco, Pontificia Universidad Católica del Peru

Ph. D. in Economics and professor in the Department of Economics at the Pontificia Universidad Católica of Peru and in the Faculty of Economic Sciences at the Universidad Nacional Mayor de San Marcos in Lima

References

Banco Mundial. (2017). Tomando impulso en la agricultura peruana. Oportunidades para aumentar la productividad y mejorar la competitividad del sector. Banco Internacional de Reconstrucción y Fomento / Banco Mundial.

Baldwin, R. (1985). The Political Economy of US Import Policy. MIT Press.

Baldwin, R. (1976, June). U.S. Tariff Policy: Formation and Effects. Discussion Paper, Office of Foreign Economic Research, US Department of Labor.

Bardales, J. (2012). Informalidad y subempleo: evidencia microeconométrica para el caso peruano. Horizonte Económico, (1), 1-17.

BCRP. (2018). Estadísticas económicas. Central Bank of Reserve of Peru. www.bcrp.gob.pe

Bhattacharjea, A. (1993). Strategic Trade Policy and Developing Countries. Economic and Political Weekly, 28(35), 1803-1810.

Blundell, R. W. & Smith, R. (1986). An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply. Econometrica, 54(4), 679-686. https://doi.org/10.2307/1911314 DOI: https://doi.org/10.2307/1911314

Boloña, C. (1993). Cambio de Rumbo. El programa económico para los 90. Instituto de Economía de Libre Mercado San Ignacio de Loyola.

Brander, J. & Spencer, B. (1983, October). International R & D Rivalry and Industrial Strategy. The Review of Economic Studies, 50(4), 707-722. https://doi.org/10.2307/2297771 DOI: https://doi.org/10.2307/2297771

Brander, J. & Spencer, B. (1985). Export Subsidies and International Market Share Rivalry. Journal of International Economics, 18, 83-100. https://doi.org/10.1016/0022-1996(85)90006-6 DOI: https://doi.org/10.1016/0022-1996(85)90006-6

Brock, W.A. & Magee, S. P. (1974, May). An Economic Theory of Politics: The Case of Tariffs. Mimeo. https://doi.org/10.1007/978-1-349-04521-1_1

Brock, W.A. & Magee, S. P. (1975). The Economics of Pork-Barrel Politics. Report 7511, Center for Mathematical Studies in Business and Economics, University of Chicago. https://doi.org/10.1007/978-1-349-22741-9_31

Brock, W.A. & Magee, S.P. (1978). The Economics of Special Interest Politics: The Case of the Tariff. American Economic Association Papers and Proceedings, 68, 246-250.

Brock. W.A. & Magee, S.P. (1980). Tariff Formation in a Democracy. In J. Black & B. Hindley (Eds.), Current Issues in Commercial Policy and Diplomacy (pp. 1-9). Trade Policy Research Centre. DOI: https://doi.org/10.1007/978-1-349-04521-1_1

Brock, W.A. & Magee, S.P. (1983). A Model of Politics, Tariffs and Rent Seeking in General Equilibrium. In B. Weisbrod & H. Hughes, Human Resources, Employment and Development Volume 3: The Problems of Developed Countries and the International Economy (pp. (497-526). International Economic Association Series Book Series (IEA). DOI: https://doi.org/10.1007/978-1-349-22741-9_31

Castillo, C. J. (2015). Distribución factorial del ingreso en el Perú 1940-2013. Tesis de Maestría, Universidad del Pacífico, Lima, Perú.

Castro-García, P. (2017). El rol actual de las asociaciones de consumidores en el Perú. ADEPRIN. http://www.adeprin.org/el-rol-actual-de-las-asociaciones-de-consumidores-en-el-peru/

Dixit, A., & Londregan, J. 1995. Redistributive Politics and Economic Efficiency. American Political Science Review, 89(4), 856-866. https://doi.org/10.2307/2082513 DOI: https://doi.org/10.2307/2082513

Dornbusch, R. (1992). The Case for Trade Liberalization in Developing Countries. Journal of Economic Perspectives, 6(1), 69-85. https://doi.org/10.1257/jep.6.1.69 DOI: https://doi.org/10.1257/jep.6.1.69

Durand, F. (2004). Los nuevos dueños del Perú. Revista Quehacer.

Durand F 2010. La mano invisible en el Estado. Crítica a los neoliberales criollos. Fondo Editorial del Pedagógico San Marcos.

Durand, F 2017. Los Doce Apóstoles de la economía peruana: una mirada social a los grupos de poder limeños y provincianos. Fondo Editorial de la PUCP.

Edwards, S., & Lederman, D. (1998). The Political Economy of Unilateral Trade Liberalization: The Case of Chile. NBER WP No 6510. https://doi.org/10.3386/w6510 DOI: https://doi.org/10.3386/w6510

Findlay, R. & Wellisz, S. (1982). Endogenous Tariffs, the Political Economy of Trade Restrictions, and Welfare. In J. N. Bhagwati (eds.), Import Competition and Response (pp. 223-244).

Galván-Pareja, G. (2006). Las asociaciones de consumidores en Lima: desarrollo y limitaciones. Pensamiento Crítico, (6), 9-23. https://doi.org/10.15381/pc.v6i0.9279 DOI: https://doi.org/10.15381/pc.v6i0.9279

Goldberg, P. & Maggi, G. (1999). Protection for Sale: An Empirical Investigation. American Economic Review, 89(5), 1135-1155. https://doi.org/10.1257/aer.89.5.1135 DOI: https://doi.org/10.1257/aer.89.5.1135

Grossman, G., & Helpman, E. (1994). Protection for Sale. American Economic Review, 84(4), 833-850.

Helpman, E. (1995). Politics and Trade Policy. NBER WP 5309. https://doi.org/10.3386/w5309 DOI: https://doi.org/10.3386/w5309

Hillman, A. L. (1982). Declining Industries and Political-Support Protectionist Motives. The American Economic Review, 72(5), 1180-1187.

Hillman, A. L. (1989). The Political Economy of Protection. Harwood Academic Publishers.

Indecopi. (2016). Estado de la protección de los consumidores en el Perú. Informe Anual 2016. Indecopi.

INEI. (2007). Matriz insumo producto 365x 101. INEI.

INEI. (2014). Producción y empleo informal en el Perú: cuenta satélite de la economía informal 2007-2012. INEI.

INEI. (2017). Producción y empleo informal en el Perú: cuenta satélite de la economía informal 2007-2016. INEI.

INEI. (2018a). Encuesta Económica Anual, 2000-2016. http://iinei.inei.gob.pe/microdatos/

INEI. (2018b). Encuesta Nacional de Hogares, 2000-2016. http://iinei.inei.gob.pe/microdatos/

INEI. (2018c). Cuentas nacionales.

https://www.inei.gob.pe/estadisticas/indice-tematico/national-accounts/

Krishna, P. & Gawande, K. (2003). The Political Economy of Trade Policy: Empirical Approaches. In E. Kwan Choi & J. Harrigan (eds.), Handbook of International Trade, Chapter 8. Blackwell Publishing.

Krugman, P. (1987). Is Free Trade Passé? The Journal of Economic Perspectives, 1(2), 131-144. https://doi.org/10.1257/jep.1.2.131 DOI: https://doi.org/10.1257/jep.1.2.131

Krugman, P. (1989). Industrial Organization and International Trade. In Handbook of Industrial Organization (pp. 1181-1223). North-Holland Press. https://doi.org/10.1016/S1573-448X(89)02008-X DOI: https://doi.org/10.1016/S1573-448X(89)02008-X

Krugman, P. (1993). The Narrow and Broad Arguments for Free Trade. The American Economic Review, 83(2), 362-366.

Laird, S. & Yeats, A. (1990). Quantitative Methods for Trade Barrier Analysis. New York University Press. https://doi.org/10.1007/978-1-349-11141-1 DOI: https://doi.org/10.1007/978-1-349-11141-1

Lederman, D. (2005). The Political Economy of Protection: Theory and the Chilean Experience. Stanford University Press. https://doi.org/10.1515/9780804767323 DOI: https://doi.org/10.1515/9780804767323

Ludema R., Mayda, A., Yu, Z. & Yu, M. (2021). The Political Economy of Protection in GVCs: Evidence from Chinese Micro Data. Journal of International Economics, 131, 1-24. https://doi.org/10.1016/j.jinteco.2021.103479 DOI: https://doi.org/10.1016/j.jinteco.2021.103479

Ludema, R., Mayda, A. M. & Mishra, P. (2010). The Political Economy of U.S. Tariff Suspensions. IMF WP-WP/10/211. https://doi.org/10.5089/9781455205424.001 DOI: https://doi.org/10.5089/9781455205424.001

Mclaren, J. (2016). The Political Economy of Commercial Policy. In K. Bagwell & R. Steiger (Eds.), Handbook of Commercial Policy. Vol. 1 (pp. 109-159). North Holland Press. https://doi.org/10.1016/bs.hescop.2016.04.001 DOI: https://doi.org/10.1016/bs.hescop.2016.04.001

Magee, S., Brock, W. & Young, L. (1989). Black Hole Tariffs and Endogenous Policy Theory: Political Economy in General Equilibrium. Cambridge University Press.

Maggi, G. (2014). International Trade Agreements. In G. Gopinath, E. Helpman & K. Rogoff (Eds.), Handbook of International Economics, Volume 4. Elsevier Science.

Mayer, W. (1984). Endogenous Tariff Formation. The American Economic Review, 74(5), 970-985.

MEF. (2011). Crecimiento económico con inclusión social. Memoria sectorial 2006-2011. MEF.

MEF. (2018). Estadísticas. https://www.mef.gob.pe/es/estadisticas

Milner, H. (1999). The Political Economy of International Trade. Annual Review Political Science, 2, 91-114. https://doi.org/10.1146/annurev.polisci.2.1.91 DOI: https://doi.org/10.1146/annurev.polisci.2.1.91

MINCETUR. (2018a). The US-Per TPA. http://www.acuerdoscomerciales.gob.pe/index.php?option=com_content&view=category&layout=blog&id=56&Itemid=79

MINCETUR. (2018b). Acuerdos comerciales. http://www.acuerdoscomerciales.gob.pe/index.php?option=com_content&view=article&id=48%3Alo-que-debemos-saber-de-los-tlc&catid=44%3Alo-que-debemos-saber-de-los-tlc&Itemid=78

MTPE. (1998). Hacia una interpretación del problema del empleo en el Perú. Boletín de Economía Laboral, (8).

MTPE. (2013). Informe anual del empleo en el Perú 2012. MTPE.

MTPE & INEI. (2002). La estimación del subempleo en el Perú 1997-2001. MTPE.

Mueller, D. C. (2003). Public Choice III. Cambridge Books, Cambridge University Press.

Nabli, M. (1990). The Political Economy of Trade Liberalization in Developing Countries. Open Economies Review, 1, 111-145. https://doi.org/10.1007/BF01886162 DOI: https://doi.org/10.1007/BF01886162

Nogués, J. J. (1991). An Historical Perspective of Peru’s Trade Liberalization Policies of the 1980s. In M. Michaely, Papageorgiou, D. & Choksi, A. (Eds.), Liberalizing Foreign Trade: Lessons of Experience in the Developing World. Chapter 4, (pp. 135-167). Basil Blackwell.

Oatley, T. (2019). International Political Economy. Routledge, Taylor & Francis Group. https://doi.org/10.4324/9781351034661 DOI: https://doi.org/10.4324/9781351034661

Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Harvard University Press.

Örgün, B. (2012). Strategic Trade Policy Versus Free Trade. Procedia, Social and Behavioral Sciences, 58,1283-1292. https://doi.org/10.1016/j.sbspro.2012.09.1111 DOI: https://doi.org/10.1016/j.sbspro.2012.09.1111

Peru top. (2018). Peru The Top 10,000 Companies. 2000-2015. Peru TOP Publications.

Rodrik, D. (1995). Political Economy of Trade Policy. In G. Grossman & K. Rogoff (Eds.), Handbook of International Economics, vol. III. Elsevier Science. https://doi.org/10.1016/S1573-4404(05)80008-5 DOI: https://doi.org/10.1016/S1573-4404(05)80008-5

Sally, R. (2007). The Political Economy of Trade Liberalization: What Lessons for Reforms Today? Trade Policy Report No 18. The South African Institute of International Affairs.

Schattschneider, E. E. (1935). Politics, Pressures, and the Tariff: A Study of Free Enterprise in Pressure Politics, as Shown in the 1929-1930 Revision of the Tariff. Prentice-Hall.

Sharif, Z., & Swank, O. (2019). Do More Powerful Interest Groups Have a Disproportionate Influence on Policy? De Economist, 167,127-143. https://doi.org/10.1007/s10645-019-09338-w DOI: https://doi.org/10.1007/s10645-019-09338-w

SUNAT. (2018a). Estadística de comercio exterior. http://www.sunat.gob.pe/estad-comExt/modelo_web/web_estadistica.htm

SUNAT. (2018b). Estadística de impuestos. http://www.sunat.gob.pe/estadisticasestudios/busqueda_ingresos.html

Tello, M. D. (1993). Mecanismos hacia el crecimiento económico: el enfoque de la organización industrial en el sector manufacturero peruano, 1970-1990. Consorcio IDRC- PUCP.

Tello, M. D. (2011). Indicadores del sector MYPE informal en el Perú: valor agregado, potencial exportador, capacidad de formalizarse y requerimientos de normas técnicas de sus productos. CISEPA WP No 310, PUCP.

Tello, M. D. (2013). Mediciones del cambio estructural en el Perú: un análisis regional. WP-Dpt. Economics, PUCP.

Trefler, D. (1993). Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import. Journal of Political Economy, 101(1), 138-160. https://doi.org/10.1086/261869 DOI: https://doi.org/10.1086/261869

UNCTAD. (2018). Trains: The Global Database on Non-Tariff Measures. TRAINS. http://trains.unctad.org/Default.aspx

Uribe J., Ortiz, C. & García, G. (2008). Informalidad y subempleo en Colombia: dos caras de la misma moneda. Cuadernos de Administración, 21(37), 211-241.

Vega-Castro, J. (2007). Los efectos de la política de liberalización del comercio exterior en el Perú durante el período 1990-1994. Revista Economía, PUCP, 30(59-60), 97-168.

Villavicencio A. (2010). La libertad sindical en el Perú: fundamentos, alcances y regulación. PLADES Programa Laboral de Desarrollo.

WITS. (2018a). World Integrated Trade Solution. https://wits.worldbank.orgdefault.aspx?lang=es

WITS. (2018b). Concordancia de productos. https://wits.worldbank.org/es/product_concordance.html

Wooldridge, J. (2007). What’s New in Econometrics? In Lecture 6 Control Functions and Related Methods. NBER Summer Institute.

Downloads

Published

2022-07-25

How to Cite

Tello Pacheco, M. (2022). The Political Economy of Trade Barriers in Peru. Apuntes Del Cenes, 41(74), 71–107. https://doi.org/10.19053/01203053.v41.n74.2022.13961

Issue

Section

Economic theory

Metrics

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.