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Conflicts And Delays In International Trade Agreements

Author

Listed:
  • JUNG HUR

    (Department of Economics, Sogang University, #1 Shinsu-Dong, Mapo-Gu, Seoul, 121-742, Korea)

Abstract

Motivated by the current delay in WTO negotiations, we consider a model of a bilateral trade agreement in the presence of asymmetric cross-border externalities. In this model, we show that both countries conflict in their preferred set of policy agendas and thus have incentives to delay their negotiations. We also find that the extent of delay depends on the level of transfer between them. These results imply an importance of bilateral compensation scheme between developing and developed countries in the current WTO negotiations so as to reduce the delays.

Suggested Citation

  • Jung Hur, 2012. "Conflicts And Delays In International Trade Agreements," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 57(02), pages 1-20.
    • Handle: RePEc:wsi:serxxx:v:57:y:2012:i:02:n:s0217590812500105
    DOI: 10.1142/S0217590812500105
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    References listed on IDEAS

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    1. Carraro, Carlo & Marchiori, Carmen & Sgobbi, Alessandra, 2005. "Advances in negotiation theory : bargaining, coalitions, and fairness," Policy Research Working Paper Series 3642, The World Bank.
    2. Mayer, Wolfgang, 1981. "Theoretical Considerations on Negotiated Tariff Adjustments," Oxford Economic Papers, Oxford University Press, vol. 33(1), pages 135-153, March.
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    More about this item

    Keywords

    International trade agreement; negative externality; a war of attrition; delay; F13; C72;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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