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Evaluating Trade Reform Using Ex-Post Criteria

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  • Jiandong Ju
  • Kala Krishna

Abstract

In contrast to existing work which takes an ex-ante approach and looks for policy prescriptions which yield welfare improvements, we take an ex-post approach. We ask whether there are indicators which show whether welfare has risen or not in the wake of a reform. That is, we look for evidence of welfare improvements in outcome space. Necessary and sufficient conditions for welfare improving trade reform are derived. These conditions are shown to be useful in evaluating Free Trade Areas and in reforming Article XXIV of GATT.

Suggested Citation

  • Jiandong Ju & Kala Krishna, 1997. "Evaluating Trade Reform Using Ex-Post Criteria," NBER Working Papers 6152, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6152
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    References listed on IDEAS

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    1. James E. Anderson & J. Peter Neary, 1996. "A New Approach to Evaluating Trade Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(1), pages 107-125.
    2. James E. Anderson & J. Peter Neary, 1988. "The Coefficient of Trade Utilization: Back to the Baldwin Envelope," Boston College Working Papers in Economics 174, Boston College Department of Economics.
    3. Anderson, James E & Neary, J Peter, 1992. "Trade Reform with Quotas, Partial Rent Retention, and Tariffs," Econometrica, Econometric Society, vol. 60(1), pages 57-76, January.
    4. James E. Anderson, 1991. "The Coefficient of Trade Utilization: The Cheese Case," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 221-244, National Bureau of Economic Research, Inc.
    5. Anderson, James E. & Bannister, Geoffrey, 1992. "The trade restrictiveness index : an application to Mexican agriculture," Policy Research Working Paper Series 874, The World Bank.
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    1. Ju, Jiandong & Krishna, Kala, 2000. "Necessary conditions for welfare improving reforms," Economics Letters, Elsevier, vol. 67(2), pages 173-178, May.

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    JEL classification:

    • F0 - International Economics - - General
    • F1 - International Economics - - Trade

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