Although the GATT prohibits discriminatory import tariffs, it includes means for circumventing this prohibition. The previous literature uses static models and discriminatory tariffs increase welfare. In a dynamic model, if governments lack the ability to precommit, this is not necessarily true....

The current slump in world coffee prices is mainly due to a structural oversupply. Instead of introducing price measures, measures aimed at reducing this excess supply would be a more efficient method of increasing coffee producers'incomes.

'Everyone against the protectionism of developed countries' Even if the debate on globalization pits sceptics and enthusiasts against one another, they seem to agree on exposing the protectionism of developed countries. This is illustrated by a recent report by OXFAM on trade, the way some...

We analyze the role of imperfect competition in explaining the relationship between temporary surges in trade-volumes and the level of cooperation in trade policy that can be sustained between countries in a repeated game framework. Imperfectly competitive markets are characterized by a mark-up...

In this paper, the author presents a simple theoretical framework to discuss the potential contributions of free trade zones on the host country. Then, he mainly concentrates on the effects of free zones in Turkey on the Turkish economy. Note: This is the revised version of the paper which is...

This paper uses a model of horizontal multinational enterprises to explore the relationship between transportation costs and trade policy cooperation. Tariffs have the effect of attracting foreign direct investment to the benefit of consumers in the host country. As transport costs fall, the...

Concern is growing regarding the poverty impacts of trade liberalization. The strong general equilibrium effects of trade liberalization can only be properly analysed in a CGE model. However, the aggregate nature of CGE models is not suited to detailed poverty analysis. We bridge this gap by...

Regional integration for at least the last sixty years has focused on trade integration. Balassa’s canonical taxonomy of regional trading arrangements is often interpreted as a sequence from free trade area through customs union and common market to economic union. In the 1980s the concept of...

Whether bilateral trade barrier data conform with the Grossman-Helpman (1995) model’s predictions about “trade talks” is examined in this article. A simple form of the prediction from the model is tested. Bilateral US-Japan and US-EU data from the 1990s are employed. The results are the...

Removal of tariff restrictions from the relatively low-skill sectors; growth in foreign direct investment; and, decline of trade union strength of the unskilled workers are cited in the empirical literature as the prime factors responsible for the growing incidence of wage inequality in many of...