Navigating Global Rules: Balancing Business Interests and Our Well-Being

ByThe Short Paper

The Political Economy of International Regulatory Cooperation

This study looks at international rules that countries agree upon, especially when businesses push for these rules. It’s important to understand that the impact of these rules on our well-being depends on whether companies in different countries have similar or different interests.

When companies in different countries want the same things, strong lobbying by these companies can lead to rules that are too relaxed, which can harm our overall well-being. On the other hand, when companies have different interests, strong lobbying can lead to stricter rules that actually benefit everyone.

So, it’s crucial to strike a balance in these international rules to make sure they help everyone and don’t hurt our well-being.

Maggi, Giovanni, and Ralph Ossa. 2023. “The Political Economy of International Regulatory Cooperation.” American Economic Review, 113 (8): 2168-2200.

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