The trade and welfare impacts of multilateral liberalization on individual countries and groups within countries depend on many factors-including the depth of liberalization by trading partners, the extent of countries' own reforms, the responsiveness of investors to changes in relative prices...

We propose that major powers give foreign aid to developing countries to facilitate politically costly economic reforms that preferential trading agreements prescribe. Democratic developing countries (i) need adjustment assistance more than autocracies and (ii) can credibly commit to using...