A 'new trade' theory of GATT/WTO negotiations

Ossa, Ralph (2008) A 'new trade' theory of GATT/WTO negotiations. CEPDP (877). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 9780853282846

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Abstract

I develop a novel theory of GATT/WTO negotiations. This theory provides new answers to two prominent questions in the trade policy literature: first, what is the purpose of trade negotiations? And second, what is the role played by the fundamental GATT/WTO principles of reciprocity and nondiscrimination? Relative to the standard terms-of-trade theory of GATT/WTO negotiations, my theory makes two main contributions: first, it builds on a ‘new trade’ model rather than the neoclassical trade model and therefore sheds new light on GATT/WTO negotiations between similar countries. Second, it relies on a production relocation externality rather than the terms-of-trade externality and therefore demonstrates that the terms-of-trade externality is not the only trade policy externality which can be internalized in GATT/WTO negotiations.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2008 Ralph Ossa
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies
Date Deposited:	17 Jul 2008 09:50
Last Modified:	13 Sep 2024 20:06
URI:	http://eprints.lse.ac.uk/id/eprint/19564

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