Download or read book A Theory of Gradual Trade Liberalization written by Robert W. Staiger and published by . This book was released on 1994 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This paper proposes a theory of gradual trade liberalization. I consider countries that are limited to self-enforcing arrangements in their trade relations. I argue that enforcement problems associated with the maintenance of low cooperative tariffs are exacerbated by the presence of resources in the import-competing sector that are (or potentially could be) earning rents from their sector-specific skills. Intuitively, by being able to transform into rents a portion of what otherwise would be dead weight loss under a tariff hike, the presence of such resources makes deviation from a low cooperative tariff to a high tariff more desirable for the deviating country, and makes punishments under reciprocally high tariffs less painful. Hence, the presence of rent-collecting resources in an import-competing sector acts as a deterrent to trade liberalization. But if an initial 'round' of liberalization can induce at least a portion of these resources in the import-competing sector to relocate to the rest of the economy, and if by not using their sector-specific skills these resources stand to lose them, then the enforcement issues associated with their presence will also diminish over time, and further rounds of liberalization are made possible by the effects of the initial round. I formalize this gradual process of trade liberalization, and explore the consequences of a failed round of liberalization for the ability to maintain current levels of cooperation.
Download or read book Threats Or Promises written by Taiji Furusawa and published by . This book was released on 2010 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Political economy Theory of Trade Agreements written by Giovanni Maggi and published by . This book was released on 2005 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We develop a model where trade agreements -- in addition to correcting terms-of-trade externalities -- help governments to commit vis-a-vis domestic industrial lobbies. The model allows us to explore how the characteristics of the political environment affect the structure of the trade agreement and the extent of trade liberalization. The model also highlights the role of intersectoral capital mobility in determining trade liberalization. In a dynamic extension of the model, we explore the extent to which trade liberalization occurs gradually, and how its speed depends on the fundamentals of the problem"--National Bureau of Economic Research web site.
Download or read book Trade Liberalization and Protectionism written by Balthasar Hahn and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book makes an intensive review of the literature on trade liberalisation and its impacts on growth and distribution in developing countries. Moreover, the authors scrutinise some controversial national initiatives that are gradually fragmenting the international economic field. The urgent need that multilateral institutions have to push trade higher up in the list of the political priorities is emphasised. In addition, the biggest producers and exporters of agricultural products have been adopting the genetic engineering in order to improve the factors productivity and the firms profits. The authors examine the potential motivations behind the different policies on GM products adopted by US and EU. Additionally, the welfare effect of bilateral free trade agreement (FTA) in a vertical trade structure is investigated in this book. A three-country model is considered with one country exporting intermediate good and two countries exporting final good. Other chapters explore the major theories of international trade from antiquity up to the neo-classical economics in the latter part of the nineteenth century. Effective trade policies for developed countries today are also discussed, as well as international trade, both exports and imports, in countries such as India and China. It is the authors contention that these two countries pose particular challenges and offer particular opportunities in the evolving trade-development nexuses.
Download or read book Trade Liberalization written by Romain Wacziarg and published by Edward Elgar Publishing. This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This compelling two-volume collection presents the major literary contributions to the economic analysis of the consequences of trade liberalization on growth, productivity, labor market outcomes and economic inequality. Examining the classical theories that stress gains from trade stemming from comparative advantage, the selection also comprises more recent theories of imperfect competition, where any potential gains from trade can stem from competitive effects or the international transmission of knowledge. Empirical contributions provide evidence regarding the explanatory power of these various theories, including work on the effects of trade openness on economic growth, wages, and income inequality, as well as evidence on the effects of trade on firm productivity, entry and exit. Prefaced by an original introduction from the editor, the collection will to be an invaluable research resource for academics, practitioners and those drawn to this fascinating topic.
Download or read book Shock Versus Gradualism in Models of Rational Expectations written by Susan Mary George and published by International Monetary Fund. This book was released on 1997-09 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a new argument for “shock” versus “gradualism” in the implementation of trade policies. In the simple context of a small open economy with rational expectations, we consider the comparative welfare effects of eliminating an import tariff either immediately as an unanticipated shock, or gradually over a preannounced length of time. The gradualist policy introduces a distortion in consumption-accumulation decisions and generates welfare costs. And if the gradual change is extended over “too long” a period, these costs may exceed the long-run benefits of liberalization.
Download or read book Threats Or Promises written by Taiji Furusawa and published by . This book was released on 2011 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Adjusts Gradually After Trade Liberalization written by Fernando Leibovici and published by . This book was released on 2018 with total page 2 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, the impact of international trade liberalization on economic outcomes such as output, investment, and employment has been at the forefront of political and economic discussions.
Download or read book Trade Liberalization and the Theory of Endogenous Protection an Econometric Study of U S Import Policy written by Trefler, Daniel and published by . This book was released on 1990 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Welfare Effects of Trade and Capital Market Liberalization written by Sebastian Edwards and published by . This book was released on 1983 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper deals with the dynamics of trade and capital account liberalization in a developing country. The welfare consequences of trade and capital account liberalization under alternative sequencing scenarios are investigated. We draw on standard trade theory results to show that the opening of the capital account in the presence of trade distortions may be welfare reducing if foreign borrowing is used to increase investment. However we demonstrate that this welfare reducing effect of opening the capital account will not occur if shadow prices are used to guide investment decisions. It is then shown that if capital market restrictions fall disproportionally on investment (as opposed to consumption) a gradual reduction of import tariffs is superior to an abrupt trade liberalization.
Download or read book Globalization and Poverty written by Ann Harrison and published by University of Chicago Press. This book was released on 2007-11-01 with total page 674 pages. Available in PDF, EPUB and Kindle. Book excerpt: Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.
Download or read book A Trade Liberalization Theory written by Hak Choi and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper first disproves the traditional trade theory and its optimal tariff implication. Then, it develops a theory to explain trade liberalization, which shows that liberalization increases output and profit to the benefit of the host country. This paper supports the works by WTO.
Download or read book Trade Liberalization and Income Distribution written by Donald Ray Davis and published by . This book was released on 1996 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Develops a model to examine the impact of trade liberalization on wages. Argues that trade liberalization will reduce wages in countries which are labour abundant relative to the global economy, if these same countries are capital abundant relative to countries in its reference set.
Download or read book The Impact of Trade Liberalization on Productivity Within and Across Industries written by Josh Ederington and published by . This book was released on 2007 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Trade Liberalization Corruption and Environmental Policy Formation written by and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Adjustment Process and the Timing of Trade Liberalization written by Michael Mussa and published by . This book was released on 1984 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the appropriate time path of the tariff rate for a small open economy that has decided to move from protection of import competing industries to free trade. Adjustment costs for moving resources to alternative uses do not provide a rationale for gradual adjustment of the tariff rate because in the absence of distortions, rational optimizing agents will make socially appropriate investment decisions with respect to adjustment when they are qiven correct price signals. Some distortions of the adjustment process imply the desirability of gradual adjustment of the tariff rate to slow adjustment, but other distortions imply the desirability of subsidizing imports in the short run in order to speed movement of resources out of previously protected industries. Concern with the income redistribution effects of reductions in the tariff rate(which usually injure owners of factors in previously protected industries) does provide a general rationale for a gradual move to free trade. The influence of the unemployment consequences of tariff reduction on the appropriate path of commercial policy depends on the nature and shape of the respone of the rate of resource reallocation to the level of unemployment in previously protected industries.
Download or read book Gradualism in the GATT written by Jackie Chan and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines strategic bargaining in a non-cooperative game of tariff negotiation in the General Agreement on Tariffs and Trade (GATT). In the model, a country bargains sequentially and bilaterally with multiple trading partners under the MFN principle, making take-it-or-leave-it offers consisting of tariffs and transfers. A dynamic bargaining inefficiency arises in which the country strategically delays the reduction of its tariff until the final stage, and extensions to the model demonstrate gradual trade liberalization over multiple stages. Based on this idea of forward manipulation, the theory provides an explanation for gradualism in tariff reduction during the early GATT rounds.
