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Economic Theory and the Interpretation of GATT/WTO

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  • Kyle Bagwell
  • Robert W. Staiger

Abstract

Over the past 50 years, a remarkable degree of trade liberalization has been achieved through GATT/WTO negotiations. In this paper, we describe work that provides a theoretical interpretation of this institution. We emphasize two key features of GATT/WTO: reciprocity and enforcement. We also identify important areas for future research. The work described here contributes to the fields of International Trade and Applied Game Theory.

Suggested Citation

  • Kyle Bagwell & Robert W. Staiger, 2002. "Economic Theory and the Interpretation of GATT/WTO," The American Economist, Sage Publications, vol. 46(2), pages 3-19, October.
    • Handle: RePEc:sae:amerec:v:46:y:2002:i:2:p:3-19
    DOI: 10.1177/056943450204600201
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    References listed on IDEAS

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    11. John McMillan, 1989. "A Game-Theoretic View of International Trade Negotiations: Implications for the Developing Countries," Palgrave Macmillan Books, in: John Whalley (ed.), Developing Countries and the Global Trading System, chapter 2, pages 26-44, Palgrave Macmillan.
    12. Robert W. Staiger & Kyle Bagwell, 1999. "An Economic Theory of GATT," American Economic Review, American Economic Association, vol. 89(1), pages 215-248, March.
    13. McLaren, John, 1997. "Size, Sunk Costs, and Judge Bowker's Objection to Free Trade," American Economic Review, American Economic Association, vol. 87(3), pages 400-420, June.
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    Cited by:

    1. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    2. Serrano Caballero, Enriqueta & Ojo, Marianne, 2019. "Trade Negotiations and Global Relations: Emerging Players and Actors," MPRA Paper 92105, University Library of Munich, Germany.
    3. N. Nuruzzaman & Ajai Gaur & Rakesh B. Sambharya, 2022. "WTO accession and firm exports in developing economies," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 444-466, December.

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