Evidence from Mercosur suggests that eliminating duty drawbacks for intra-regional exports would lead to increased counterlobbying against protection of intermediate products. Without the duty drawback, the common external tariff would have been an estimated 3.5 percentage points (25 percent)...

During a period of trade liberalization (1985-89), when Mexican manufacturing experienced an important inflow of foreign direct investment, manufacturing sectors with heavy foreign direct investment received greater protection in import-competing sectors. With the move toward greater openness,...

The increase in investment abroad during the past two decades may help explain the simultaneous worldwide rush toward free trade. The entry of foreign capital may change the political game, increasing openness to international trade no matter what form the foreign capital takes (whether entering...

When technology transfer is costly, a foreign firm and host country government may differ in their preferences over direct entry and acquisition. Government intervention could help induce the socially preferred choice

Country size matters in determining the effectiveness of domestic and foreign competition on pricing behavior in manufacturing. Removing barriers to entry of new firms reduces markups more in large countries, while removing barriers to imports reduces markups more in small countries

Average most-favored-nation tariffs in the "Quad" (Canada, the European Union, Japan, and the United States) have fallen to about 5 percent. But tariffs more than three times the average most-favored-nation duty are not uncommon in the Quad and have a disproportionate effect on exports of least...

The European Union, Japan and the United States have recently announced initiatives to improve market access for the poorest countries. How would these initiatives affect Sub-Saharan Africa and the rest of the world