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Domestic Policies, National Sovereignty, and International Economic Institutions

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  • Kyle Bagwell
  • Robert W. Staiger

Abstract

To what extent must nations cede control over their economic and social policies if global efficiency is to be achieved in an interdependent world? This question is at the center of the debate over the future role of the WTO (formerly GATT) in the realm of labor and environmental standards. In this paper we establish that the market access focus of current WTO rules is well equipped to handle the problems associated with choices over labor and environmental standards. In principle, with relatively modest changes that grant governments more sovereignty, not less, these rules can deliver globally efficient outcomes.

Suggested Citation

  • Kyle Bagwell & Robert W. Staiger, 2001. "Domestic Policies, National Sovereignty, and International Economic Institutions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 519-562.
    • Handle: RePEc:oup:qjecon:v:116:y:2001:i:2:p:519-562.
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    1. Bagwell, K. & Staiger, R.W., 1996. "Reciprocal Trade Liberalization," Working papers 9602, Wisconsin Madison - Social Systems.
    2. Bagwell,K. & Staiger,R.W., 1998. "The simple economics of labor standards and the Gatt," Working papers 9, Wisconsin Madison - Social Systems.
    3. Spagnolo, G., 1999. "Issue Linkage, Delegation, and International Policy Cooperation," Cambridge Working Papers in Economics 9913, Faculty of Economics, University of Cambridge.
    4. Josh Ederington, 2001. "International Coordination of Trade and Domestic Policies," American Economic Review, American Economic Association, vol. 91(5), pages 1580-1593, December.
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    More about this item

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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