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A “New Trade” Theory of GATT/WTO Negotiations

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  • Ralph Ossa
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    Abstract

    I suggest a novel theory of GATT/WTO negotiations based on Krugman’s “new trade” model. It emphasizes international production relocations and is easy to calibrate to bilateral trade data. Focusing on the major players in recent GATT/WTO negotiations, I find that it implies reasonable noncooperative tariffs as well as moderate gains from GATT/WTO negotiations.

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    File URL: http://www.jstor.org/stable/pdfplus/10.1086/659371
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    File URL: http://www.jstor.org/stable/full/10.1086/659371
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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Political Economy.

    Volume (Year): 119 (2011)
    Issue (Month): 1 ()
    Pages: 122 - 152

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    Handle: RePEc:ucp:jpolec:doi:10.1086/659371

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    Web page: http://www.journals.uchicago.edu/JPE/

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    Cited by:
    1. Felbermayr, Gabriel & Jung, Benjamin, 2012. "Unilateral trade liberalization in the Melitz model: A note," University of Tuebingen Working Papers in Economics and Finance 30, University of Tuebingen, Faculty of Economics and Social Sciences.
    2. Ruta, Michele & Venables, Anthony J, 2012. "International trade in natural resources: Practice and policy," CEPR Discussion Papers 8903, C.E.P.R. Discussion Papers.
    3. Alessia Campolmi & Harald Fadinger & Chiara Forlati, 2010. "Trade policy: home market effect versus terms of trade externality," MNB Working Papers 2010/6, Magyar Nemzeti Bank (the central bank of Hungary).
    4. John Feddersen, 2012. "Why we can't confirm the pollution haven hypothesis: A model of carbon leakage with agglomeration," Economics Series Working Papers 613, University of Oxford, Department of Economics.
    5. Rahel Aichele & Gabriel J. Felbermayr, 2011. "Kyoto and Carbon Leakage: An Empirical Analysis of the Carbon Content of Bilateral Trade," CESifo Working Paper Series 3661, CESifo Group Munich.
    6. Pascalis Raimondos-Møller & Alan D. Woodland, 2011. "Reciprocity, World Prices and Welfare," CESifo Working Paper Series 3607, CESifo Group Munich.

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