Globalization's Bystanders: Does Trade Liberalization Hurt Countries that Do Not Participate?
AbstractThis paper uses trade theory to examine the effects of trade liberalization on countries that do not participate in it. These include both countries that fail to participate in multilateral trade negotiations, and also countries that lie outside of preferential trading arrangements such as free trade areas. The analysis suggests that, while it is theoretically possible for excluded countries to gain, through improved terms of trade, from trade liberalization, several reasons suggest that they are more likely to lose.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2005/35.
Length: 16 pages
Date of creation: 2005
Date of revision:
globalization; trade liberalization;
Other versions of this item:
- Stern, Robert M. & Deardorff, Alan V., 2006. "Globalization's bystanders: Does trade liberalization hurt countries that do not participate?," World Development, Elsevier, vol. 34(8), pages 1419-1429, August.
- Alan V. Deardorff & Robert M. Stern, 2005. "Globalization’s Bystanders: Does Trade Liberalization Hurt Countries that Do Not Participate?," Working Papers 529, Research Seminar in International Economics, University of Michigan.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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