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The Political Economy of Free Trade

In: Prospects and Challenges of Free Trade Agreements: Unlocking Business Opportunities in Gulf Cooperation Council (GCC) Markets

Author

Listed:
  • Doren Chadee

    (Deakin University)

  • Banjo Roxas

    (Deakin University)

  • Tim Rogmans

    (Zayed University)

Abstract

This chapter has two goals. The first is to review the theoretical arguments why free trade can be beneficial for a country from both an economics and institutional perspectives. The second goal is to explain how, despite the potential benefits associated with free trade, countries still have a number of policies in place which restrict the freeflow of goods, services and capital. We review a number of these restrictive policies and show the extent of the benefits which are likely to arise as a result of their elimination through a free trade agreement (FTA). Lastly, the chapter concludes with a discussion of some of the limitations associated with bilateral and plurilateral (FTAs) in realising the full benefits of such agreements.

Suggested Citation

  • Doren Chadee & Banjo Roxas & Tim Rogmans, 2015. "The Political Economy of Free Trade," Palgrave Macmillan Books, in: Prospects and Challenges of Free Trade Agreements: Unlocking Business Opportunities in Gulf Cooperation Council (GCC) Markets, chapter 2, pages 9-33, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-47988-4_2
    DOI: 10.1057/9781137479884_2
    as

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