This paper discusses the issue of regulatory protectionism and its implication for reciprocity and international bargaining on regulation. In a simple two way trade model a la Brander and Spencer, we take into account the three following features of regulatory measures: a) a regulation raises the cost not only of foreign producers but also of domestic producers, b) a regulation creates a fixed cost which is entirely supported by foreign exporters, c) a regulation may provide a welfare gain valued per se by individuals or to correct some market failure. In this context, we investigate the political economy forces for unilateral regulatory protectionism and the effectiveness of various intra-sectorial bargaining schemes (negotiated reciprocal regulation setting, harmonization or mutual recognition agreements) to ensure reciprocal market access.
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Paper provided by Laboratoire d'Economie Appliquee, INRA in its series Research Unit Working Papers with number
0102.
Find related papers by JEL classification: D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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.:
Kala Krishna, 1988.
"High-Tech Trade Policy,"
NBER Chapters,
in: Issues in US-EC Trade Relations, pages 285-314
National Bureau of Economic Research, Inc.
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