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Departure from Free Trade: A Survey

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Author Info
Hillman, Arye L.

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Abstract

This Paper surveys the ways in which departures from free trade have been treated in economic analysis. Normative theories linked to classical arguments have shown how departure from free trade can enhance efficiency and increase social welfare. Positive perspectives with links to political-economy premises of public choice view departure from free trade as socially undesirable and consider why governments nonetheless at times choose not to adhere to free trade. In the first case, models propose how choosing to depart from free trade can be in the public interest. In the second case, decisions by government to depart from free trade are viewed as compromising the public interest. The distinctions provide the basis for an interpretive path through the literature on international trade policy.

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Publisher Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3707.

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Date of creation: Jan 2003
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Handle: RePEc:cpr:ceprdp:3707

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Related research
Keywords: free trade; political interests; protection; public interest; special interests; strategic trade policy;

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Arad, Ruth W. & Hillman, Arye L., 1979. "Embargo threat, learning and departure from comparative advantage," Journal of International Economics, Elsevier, vol. 9(2), pages 265-275, May. [Downloadable!] (restricted)
  2. Avinash K. Dixit & Gene M. Grossman, 1987. "Targeted Export Promotion with Several Oligopolistic Industries," NBER Working Papers 1344, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Hillman, Arye L, 1990. " Protectionist Policies as the Regulation of International Industry," Public Choice, Springer, vol. 67(2), pages 101-10, November.
  4. Baldwin, Robert E., 1984. "Trade policies in developed countries," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 12, pages 571-619 Elsevier. [Downloadable!] (restricted)
  5. Hillman, Arye L & Ursprung, Heinrich W, 1988. "Domestic Politics, Foreign Interests, and International Trade Policy," American Economic Review, American Economic Association, vol. 78(4), pages 719-45, September.
  6. Wilfred J. Ethier, 2002. "Unilateralism in a Multilateral World," Economic Journal, Royal Economic Society, vol. 112(479), pages 266-292, April. [Downloadable!] (restricted)
    Other versions:
  7. Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-66, June. [Downloadable!] (restricted)
  8. Arye L. Hillman & John G. Riley, 1987. "Politically Contestable Rents and Transfers," UCLA Economics Working Papers 452, UCLA Department of Economics. [Downloadable!]
  9. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December. [Downloadable!] (restricted)
  10. Kyle Bagwell & Robert W. Staiger, 1999. "An Economic Theory of GATT," American Economic Review, American Economic Association, vol. 89(1), pages 215-248, March. [Downloadable!] (restricted)
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  11. Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494 Elsevier. [Downloadable!] (restricted)
  12. Hillman, Arye L, 1992. " International Trade Policy: Benevolent Dictators and Optimizing Politicians," Public Choice, Springer, vol. 74(1), pages 1-15, July.
  13. Mayer, Wolfgang & Riezman, Raymond G., 1990. "Voter Preference for Trade Policy Instruments," Working Papers 722, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  14. Feeney, JoAnne & Hillman, Arye L, 2001. "Privatization and the Political Economy of Strategic Trade Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 535-56, May.
  15. Cassing, James H. & Hillman, Arye L., 1985. "Political influence motives and the choice between tariffs and quotas," Journal of International Economics, Elsevier, vol. 19(3-4), pages 279-290, November. [Downloadable!] (restricted)
  16. Kyle Bagwell & Robert W. Staiger, 2000. "Strategic Trade, Competitive Industries and Agricultural Trade Disputes," NBER Working Papers 7822, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. Mayer, Wolfgang, 1977. "The national defense tariff argument reconsidered," Journal of International Economics, Elsevier, vol. 7(4), pages 363-377, November. [Downloadable!] (restricted)
  18. Cassing, James H & Hillman, Arye L, 1986. "Shifting Comparative Advantage and Senescent Industry Collapse," American Economic Review, American Economic Association, vol. 76(3), pages 516-23, June. [Downloadable!] (restricted)
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