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Why the WTO? An Introduction to the Economics of Trade Agreements

Author

Listed:
  • Grossman, Gene M.

    (Princeton University)

  • Horn, Henrik

    (Research Institute of Industrial Economics (IFN))

Abstract

This study is part of The American Law Institute (ALI) project Legal and Economic Principles of World Trade Law. The project aims to analyze the central instrument in the World Trade Organization (WTO) Agreement for the regulation of trade in goods – The General Agreement on Tariffs and Trade GATT). The present study is one of two background studies for this project*. The first study, The Genesis of the GATT, appraises the rationale for the creation of the GATT, and tracks its development from a historical and legal perspective. This second study provides an overview of the economics of trade agreements. * There is a second leg to the ALI project, in which economists and lawyers jointly analyze the emerging case law from the WTO dispute-settlement mechanism.

Suggested Citation

  • Grossman, Gene M. & Horn, Henrik, 2012. "Why the WTO? An Introduction to the Economics of Trade Agreements," Working Paper Series 916, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0916
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    References listed on IDEAS

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    1. Mayer, Wolfgang, 1981. "Theoretical Considerations on Negotiated Tariff Adjustments," Oxford Economic Papers, Oxford University Press, vol. 33(1), pages 135-153, March.
    2. Staiger, Robert W., 1995. "International rules and institutions for trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 29, pages 1495-1551, Elsevier.
    3. Sapir, Andre & Trachtman, Joel P., 2008. "Subsidization, price suppression, and expertise: causation and precision in Upland Cotton," World Trade Review, Cambridge University Press, vol. 7(1), pages 183-209, January.
    4. Wilfred J. Ethier, 2004. "Political Externalities, Nondiscrimination, and a Multilateral World," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 303-320, August.
    5. Crowley, Meredith A. & Palmeter, David, 2009. "Japan – Countervailing Duties on Dynamic Random Access Memories from Korea (DS 336 and Corr.1, adopted 17 December 2007)," World Trade Review, Cambridge University Press, vol. 8(1), pages 259-272, January.
    6. Copeland, Brian R., 1990. "Strategic enhancement and destruction of fisheries and the environment in the presence of international externalities," Journal of Environmental Economics and Management, Elsevier, vol. 19(3), pages 213-226, November.
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    Cited by:

    1. Jean-Marc Malambwe Kilolo, 2018. "An elementary model of export tax war," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(2), pages 307-325, May.

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    More about this item

    Keywords

    Trade agreements; GATT; WTO;
    All these keywords.

    JEL classification:

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

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    This paper has been announced in the following NEP Reports:

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