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Empirical Evidence on the Impact of Multilateral Trade Liberalization on Domestic Trade Policy

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  • Gnangnon Sèna Kimm

    (World Trade Organization, Geneva1211, Switzerland)

Abstract

During recent years, the world has faced a growing anti-trade rhetoric, which has been translating in a strong appeal of domestic trade protectionist measures, situation that has been undermining trade multilateralization. The current paper examines the extent to which multilateral trade liberalization affects domestic trade policy liberalization. The analysis uses a panel dataset comprising 166 countries over the period 1995–2014. It suggests evidence that multilateral trade liberalization is strongly conducive to domestic trade policy liberalization. Moreover, as countries further develop, they experience a greater impact of multilateral trade liberalization on domestic trade policy liberalization. The take-home message of this analysis is that domestic protectionist trade policy measures would likely undermine the multilateralization of trade and prompt trading partners to react in the same way. This would ultimately result in trade wars, which would be damage for domestic economies and the world’s economic performance.

Suggested Citation

  • Gnangnon Sèna Kimm, 2017. "Empirical Evidence on the Impact of Multilateral Trade Liberalization on Domestic Trade Policy," Global Economy Journal, De Gruyter, vol. 17(3), pages 1-14, September.
    • Handle: RePEc:bpj:glecon:v:17:y:2017:i:3:p:14:n:8
    DOI: 10.1515/gej-2017-0047
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    References listed on IDEAS

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    More about this item

    Keywords

    multilateral trade liberalization; domestic trade policy; developed and developing countries;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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