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A 'New Trade' Theory of GATT/WTO Negotiations

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  • Ralph Ossa

Abstract

I suggest a novel theory of GATT/WTO negotiations based on the Krugman (1980) "new trade" model. It emphasizes international production relocations and is easy to calibrate to bilateral trade data. Focusing on the major players in recent GATT/WTO negotiations, I find that it implies reasonable noncooperative tariffs as well as moderate gains from GATT/WTO negotiations.

Suggested Citation

  • Ralph Ossa, 2010. "A 'New Trade' Theory of GATT/WTO Negotiations," NBER Working Papers 16388, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16388
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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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