Showing 1 - 10 of 32
We study the impact of import protection on relationship-specific investments, organizational choice and welfare. We show that a tariff on intermediate inputs can improve social welfare through mitigating hold-up problems. It does so if it discriminates in favor of the investing party, thereby...
Persistent link: https://www.econbiz.de/10010884590
We study the relationship between participation in free trade agreements (FTAs) and the sustainability of democracy. Our model shows that FTAs can critically reduce the incentive of authoritarian groups to seek power by destroying protectionist rents, thus making democracies last longer. This...
Persistent link: https://www.econbiz.de/10010884636
I develop a novel theory of GATT/WTO negotiations. This theory provides new answers to two prominent questions in the trade policy literature: first, what is the purpose of trade negotiations? And second, what is the role played by the fundamental GATT/WTO principles of reciprocity and...
Persistent link: https://www.econbiz.de/10010928621
This paper develops an infinite-horizon, political agency model with a continuum of political districts, in which incumbent politicians can improve their re-election probability by attracting swing voters in key states through strategic trade protection. A unique equilibrium is shown to exist...
Persistent link: https://www.econbiz.de/10010928735
-protectionists at home; they lower foreign tariffs by convincing their own government to lower home tariffs. Due to the new array of … political forces, each government finds it politically optimal to remove tariffs that it previously found politically optimal to …
Persistent link: https://www.econbiz.de/10010928767
The aim of this study is to examine the extent to which Chinese and Indian autocomponent producers have advanced towards international best practice levels of productivity and quality. The report is based on a survey of nine car manufacturers in China and six in India; a range of general...
Persistent link: https://www.econbiz.de/10010745200
Using detailed data on trade and tariffs from 1992-2007, we examine how the ASEAN Free Trade Agreement has affected trade with non-members and external tariffs facing non-members. First, we examine the effect of preferential and external tariff reduction on import growth from ASEAN insiders and...
Persistent link: https://www.econbiz.de/10010745301
Weak enforcement of international contracts can substantially reduce international trade. We develop a model where agents build reputations to overcome the difficulties that this institutional failure causes in a context of incomplete information. The model describes the interplay between...
Persistent link: https://www.econbiz.de/10010745456
Using the international investment regime as its point of departure, the paper applies notions of bounded rationality to the study of economic diplomacy. Through a multi-method approach, it shows that developing countries often ignored the risks of bilateral investment treaties (BITs) until they...
Persistent link: https://www.econbiz.de/10010745595
Unilateral minimum quality standards are endogenously determined as the outcome of a non-cooperative standard-setting game between the governments of two countries. Cross-country externalities from the implementation of minimum quality standards are shown to give rise to a Prisoners' Dilemma...
Persistent link: https://www.econbiz.de/10010745944