Trade corruption traps are associated with trade between poor countries with weak institutions (South) and rich countries with strong institutions (North). Predators (extortionists) on trade at South’s border earn their opportunity cost in production. Equilibrium extortion in the trap is...

There is widespread concern that the Uruguay Round may reduce the welfare of developing countries through its effect on world agricultural prices. Reduced agricultural price distortions among major supplying nations are predicted to increase basic food prices and decrease some important export...