TRADE INTERESTS IN CONTEMPORARY POLITICAL ECONOMY

In this research work, Author focus on the analysis of the trade interests in contemporary political economy. In last time foreign trade policy has been strongly affected by the force of the world economic crisis. Trade distortions revenues and protectionism played important roles in the politics of political parties. What indicates the importance and innovativeness of the research is the presentation of the new aspects of the political economy models of the foreign trade policy and trade interests in the political economy. First of all it must underline that in the new theoretical terms in the demand for trade policy very important is factor specificity. The low specificity of factors means that factor returns are equalized throughout a region’s economy. On the other hand, the Ricardo-Viner assumes that some factors are stuck in their present uses; therefore, factor returns are not equalized throughout a region’s economy, but are industry specific. Trade policy coalitions should form along the lines of exporting versus import-competing industries. The main objective of the research task is to give a comprehensive analysis of the political economy models of foreign trade policy, trade interests indicated by export orientation and import sensitivity, protectionistic pressures in different political system and different types of authoritarian regimes. It must be emphasis that on a theoretical level, understanding the choice of trade policies between liberalizm and protectionisme is very important. It should be stressed that free trade in itself is not responsible for economic growth, but more significant are the determining macroeconomic stability and increasing investment.