IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/4699.html
   My bibliography  Save this paper

Socially Responsible Trade Integration: A Political Economy Perspective

Author

Listed:
  • Verdier, Thierry

Abstract

Economists tend to agree that international trade liberalization brings significant gains from trade to countries engaging in such a process. At the same time however, public opinion is much less optimistic and there is a widespread concern that the current sharing of the gains from trade is ‘unfair’ and unevenly distributed across and within countries. This Paper emphasizes that in order to understand the position of globalization skeptics and respond adequately to their complaints, one should move beyond the existence of the gains from trade (static and/or dynamic) and one should pay more attention to the ‘pains from trade’ and, more generally, the distributive dimensions of trade integration. In particular, a critical dimension that needs to be addressed is the issue of the redistribution (or non-redistribution) of the gains from trade and the interactions between trade openness and domestic redistributive policy. After reviewing briefly what we know about the distributive impacts of trade openness, the paper considers the political economy feedbacks of trade integration on domestic redistribution and identifies the economic and political feasibility constraints of a ‘trade regime with redistribution’. Taking then a normative perspective, it explores the conditions for the existence of a ‘socially responsible’ open trade regime and discusses some of the policy tradeoffs associated with its implementation.

Suggested Citation

  • Verdier, Thierry, 2004. "Socially Responsible Trade Integration: A Political Economy Perspective," CEPR Discussion Papers 4699, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4699
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4699
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Do, Quy-Toan & Levchenko, Andrei A., 2009. "Trade, inequality, and the political economy of institutions," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1489-1520, July.
    2. Louis Hotte & Stanley L. Winer, 2008. "The Demands for Environmental Regulation and for Trade in the Presence of Private Mitigation," Working Papers 0810E, University of Ottawa, Department of Economics.
    3. Hotte, Louis & Winer, Stanley L., 2012. "Environmental regulation and trade openness in the presence of private mitigation," Journal of Development Economics, Elsevier, vol. 97(1), pages 46-57.
    4. Ruben Segura-Cayuela, 2006. "Inefficient Policies, Inefficient Institutions and Trade," 2006 Meeting Papers 502, Society for Economic Dynamics.
    5. Emmanuel MOUSSONE, 2010. "Insertion des pays de la zone franc africaine dans le commerce mondial : étude d’une spécialisation appauvrissante et le problème du financement de l’économie (Insertion of the African Franc Zone Coun," Working Papers 231, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.

    More about this item

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • F10 - International Economics - - Trade - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:4699. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.