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Evaluating Trade Reform Using Ex-Post Criteria

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  • Jiandong Ju
  • Kala Krishna

Abstract

In contrast to existing work which takes an ex-ante approach and looks for policy prescriptions which yield welfare improvements, we take an ex-post approach. We ask whether there are indicators which show whether welfare has risen or not in the wake of a reform. That is, we look for evidence of welfare improvements in outcome space. Necessary and sufficient conditions for welfare improving trade reform are derived. These conditions are shown to be useful in evaluating Free Trade Areas and in reforming Article XXIV of GATT.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6152.

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Date of creation: Aug 1997
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Publication status: published as Canadian Journal of Economics, Volume: 33 Issue: 3 (August 2000) Pages: 787-798
Handle: RePEc:nbr:nberwo:6152

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  1. J Anderson & J.P. Neary, 1993. "A New Approach to Evaluating Trade Policy," CEP Discussion Papers dp0173, Centre for Economic Performance, LSE.
  2. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, Econometric Society, vol. 60(1), pages 57-76, January.
  3. James E. Anderson, 1991. "The Coefficient of Trade Utilization: The Cheese Case," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 221-244 National Bureau of Economic Research, Inc.
  4. Anderson, James E. & Bannister, Geoffrey, 1992. "The trade restrictiveness index : an application to Mexican agriculture," Policy Research Working Paper Series 874, The World Bank.
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Cited by:
  1. Ju, Jiandong & Krishna, Kala, 2000. "Necessary conditions for welfare improving reforms," Economics Letters, Elsevier, vol. 67(2), pages 173-178, May.

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