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Cooperation in WTO’s Tariff Waters?

Author

Listed:
  • Marcelo OLARREAGA

    (University of Geneva)

  • Alessandro NICITA

    (FERDI)

  • Peri SILVA

    (FERDI)

Abstract

This paper examines the extent to which tariff cooperation is observed among World Trade Organization (WTO) members. With the help of a simple political economy model, we show that tariffs are positively correlated with the importer’s market power when they are set non-cooperatively, but negatively correlated when set cooperatively. We use this prediction to empirically identify the extent of cooperation in the WTO, and find that more than three quarters of WTO members’ tariffs are set non-cooperatively. Keywords: Export supply elasticities, WTO cooperation, tariff water

Suggested Citation

  • Marcelo OLARREAGA & Alessandro NICITA & Peri SILVA, 2016. "Cooperation in WTO’s Tariff Waters?," Working Papers P176, FERDI.
    • Handle: RePEc:fdi:wpaper:3387
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    References listed on IDEAS

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    More about this item

    Keywords

    export supply elasticities; wto cooperation; tariff water;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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