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Globalization's Bystanders: Does Trade Liberalization Hurt Countries That Do Not Participate?

In: Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff

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Listed:
  • ROBERT M. STERN

    (University of Michigan, Ann Arbor, USA)

  • ALAN V. DEARDORFF

    (University of Michigan, Ann Arbor, USA)

Abstract

This 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 from trade liberalization through improved terms of trade, several reasons suggest that they are more likely to lose.© 2006 Elsevier Ltd. All rights reserved.

Suggested Citation

  • Robert M. Stern & Alan V. Deardorff, 2011. "Globalization's Bystanders: Does Trade Liberalization Hurt Countries That Do Not Participate?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 31, pages 391-401, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814340373_0031
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    2. Costantini, Valeria & Liberati, Paolo, 2014. "Technology transfer, institutions and development," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 26-48.
    3. Mikic, Mia, 2007. "Preferential trade agreements and agricultural trade liberalization in Asia and the Pacific," MPRA Paper 2947, University Library of Munich, Germany.
    4. Chris Milner, 2006. "Making NAMA Work: Supporting Adjustment and Development," The World Economy, Wiley Blackwell, vol. 29(10), pages 1409-1422, October.
    5. Bojnec, Stefan & Ferto, Imre, 2009. "Agro-food trade competitiveness of Central European and Balkan countries," Food Policy, Elsevier, vol. 34(5), pages 417-425, October.
    6. Patrick Minford & Sakshi Gupta & Vo P.M. Le & Vidya Mahambare & Yongdeng Xu, 2015. "Should Britain Leave the EU?," Books, Edward Elgar Publishing, number 16679, June.

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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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