What should trade negotiators negotiate about a review essay

what should trade negotiators negotiate about a review essay

What do trade negotiators negotiate about? There are two distinct theoretical approaches in the economics literature that offer an answer to this question: the terms-of-trade theory and the trads theory.

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The terms-of-trade theory holds that trade agreements are useful to governments as a means of negotiaotrs them escape from a terms-of-trade-driven Prisoners' Dilemma. The commitment theory holds that trade agreements are useful to governments reviww a means of helping them make commitments to the private sector. These theories are not mutually exclusive, but there is little direct evidence on the empirical relevance of either.

We attempt to investigate empirically the purpose served by market access commitments negotiated in the World Trade Organization.

what should trade negotiators negotiate about a review essay

We find ehat support for the terms-of-trade theory in the data. We claim more tentatively to find support in the data for the commitment theory as well. We thank Hiau Looi Kee for providing us with access to the detailed estimates of ad valorem equivalent NTB measures generated in Kee, Nicita and OlarreagaRobert Feenstra for making available to us his data on processing versus ordinary trade for China, and Cato Adrian of the Eseay Secretariat for help with many data questions.

what should trade negotiators negotiate about a review essay

The views expressed herein are those of the author s and do not necessarily reflect the views of the National Bureau of Economic Research. Download Citation Data. Staiger, Share Twitter LinkedIn Email.

what should trade negotiators negotiate about a review essay

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