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The Economic Structure of International Trade-in-Services Agreements

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  • Robert W. Staiger
  • Alan O. Sykes

Abstract

The existing economics literature on international trade agreements focuses on tariff agreements covering trade in goods and explains core features of the General Agreement on Tariffs and Trade (GATT). Tariffs play almost no role in services markets, however, and the literature cannot account for the strikingly different approach to trade liberalization in agreements such as the World Trade Organization’s General Agreement on Trade in Services (GATS). We develop a model through which key features of GATS, including its emphasis on “deep integration” can be understood. And we use this model to suggest that there may also be a middle ground for services trade liberalization between the GATS deep-integration approach and the traditional “shallow-integration” approach of GATT.

Suggested Citation

  • Robert W. Staiger & Alan O. Sykes, 2021. "The Economic Structure of International Trade-in-Services Agreements," Journal of Political Economy, University of Chicago Press, vol. 129(4), pages 1287-1317.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/712786
    DOI: 10.1086/712786
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    References listed on IDEAS

    as
    1. Joseph Francois & Bernard Hoekman, 2010. "Services Trade and Policy," Journal of Economic Literature, American Economic Association, vol. 48(3), pages 642-692, September.
    2. Bagwell, Kyle & Staiger, Robert W., 2015. "Delocation and trade agreements in imperfectly competitive markets," Research in Economics, Elsevier, vol. 69(2), pages 132-156.
    3. Matteo Fiorini & Mathilde Lebrand, 2016. "The Political Economy of Services Trade Agreements," CESifo Working Paper Series 5927, CESifo.
    4. Schwartz, Warren F & Sykes, Alan O, 2002. "The Economic Structure of Renegotiation and Dispute Resolution in the World Trade Organization," The Journal of Legal Studies, University of Chicago Press, vol. 31(1), pages 179-204, January.
    5. Robert W. Staiger & Alan O. Sykes, 2011. "International Trade, National Treatment, and Domestic Regulation," The Journal of Legal Studies, University of Chicago Press, vol. 40(1), pages 149-203.
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    Cited by:

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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