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The Choice of Trade Regime: Delayed Reform under Productivity Fluctuations and Cost of Structural Change

Author

Listed:
  • Knarvik, K.H.M.
  • Tvedt, J.

Abstract

Despite both theoretical and observable advantages of free trade, a number of countries have stuck to a restricted trade regime. Apparently, the gap between the inward oriented economies and the "free trade" world has allowed to become huge before these economies turned to a more outward oriented trade policy. As a supplement to the existing explanations for the hesitation to change trade regime, we present a model where the international productivity development is uncertain.

Suggested Citation

  • Knarvik, K.H.M. & Tvedt, J., 1997. "The Choice of Trade Regime: Delayed Reform under Productivity Fluctuations and Cost of Structural Change," Papers 16/97, Norwegian School of Economics and Business Administration-.
    • Handle: RePEc:fth:norgee:16/97
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    Keywords

    TRADE POLICY ; UNCERTAINTY;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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