The empirical observation that “large firms tend to export, whereas small firms do not” has transformed the way economists think about the determinants of international trade. Yet, it has had surprisingly little impact about how economists think about trade policy. In this paper, we...

In this paper we explore the popular but controversial idea that developing countries benefit from abandoning policy neutrality vis-a-vis trade, FDI and resource allocation across industries. Are developing countries justified in imposing tariffs, subsidies, and tax breaks that imply distortions...

The traditional boundaries between trade policy and competition policy are becoming fuzzier and less valid because firms increasingly compete at the same time in many different markets and in different ways. The following article examines a number of policy areas in which trade policy has...

Even after the Uruguay Round overhaul, existing Gatt rules leave certain competition-distorting policies and practices unchecked. For various reasons the holes in the Gatt rules cannot be filled by the unilateral application of national competition regulations. It is therefore necessary to...