In the traditional model of international trade, labour market reforms in one country are often viewed as beggar-thy-neighbour policies, because they negatively affect the competitiveness and employment levels of the country’s trading partners. Empirical evidence, however, suggests that this...

Against the backdrop of the considerable increase in protectionist measures that could be observed during the recent financial crisis, this article investigates the following questions: Are “Buy National” clauses a suitable instrument to internalise the externality that arises because the...