A “New Trade” Theory of GATT/WTO Negotiations

Ralph Ossa

235 citations0/0 files storedJournal of Political Economy

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Global trade and economics World Trade Organization Law Global Trade and Competitiveness

Abstract

I suggest a novel theory of GATT/WTO negotiations based on Krugman’s “new trade” model. It emphasizes international production relocations and is easy to calibrate to bilateral trade data. Focusing on the major players in recent GATT/WTO negotiations, I find that it implies reasonable noncooperative tariffs as well as moderate gains from GATT/WTO negotiations.

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References

1990Increasing Returns and Economic Geography 2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 2000The Spatial Economy: Cities, Regions, and International Trade 1990Scale Economies, Product Differentiation, and the Pattern of Trade 1992Protection For Sale 1986Market Structure and Foreign Trade 2005Market Size, Trade, and Productivity 1995Globalization and the Inequality of Nations

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