This paper posits a formal political economy model where the principle of reciprocity in multilateral trade talks … results in the gradual elimination of tariffs. Reciprocity trade talks turn each nation’s exporters into anti …/influence of import-competing sectors and increasing that of exporters. In the next round of trade talks governments therefore find …

Median voter theory applied to trade policy predicts positive tariffs in capital-abundant countries and negative … component and a positive in terms of trade component. Positive terms of trade effects raise tariffs in all countries, and can …-abundant countries. As expected, terms of trade effects raise tariffs across all countries and are stronger among non-members of the WTO. …

, and slowly increases at later stages of development. Third, the volatility of country-specific macroeconomic shocks falls … with the level of development. We argue that many theories linking volatility and development are not consistent with these … volatility into these four sources, quantify their contribution to aggregate volatility, and study how they relate to the stage …

We study the relationship between participation in free trade agreements (FTAs) and the sustainability of democracy …

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 …

regional trade agreements involving the US. We exploit the variation in the frequency with which the US has granted immediate … duty free access (IDA) to its Free Trade Area partners across tariff lines. A key finding is that the US has granted IDA … Uruguay Round (multilateral) ‘concessions’ have emulated subsequent (preferential) trade liberalisation. We conclude from this …

This paper reviews the theoretical and the empirical literature on regionalism. The formation of regional trade … agreements has been, by far, the most popular form of reciprocal trade liberalization in the last fifteen years. The … discriminatory character of these agreements has raised three main concerns: that trade diversion would be rampant, because special …

We examine the effect of regionalism on unilateral trade liberalization using industry-level data on applied MFN … effect of preferential liberalization on external trade liberalization are unfounded. …

of the Canada - US Free Trade Agreement (CUSFTA) of 1989. We calibrate our model to the pre-trade liberalization stage …, simulate the trade liberalization, and compute the resulting growth rates of Canadian industry productivity, exports and … imports. We compare them with Trefler’s (2004) estimates of the effects of CUSFTA. Our results show that our model performs …