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Keywords:Free trade 

Journal Article
Classical and neoclassical roots of the theory of optimum tariffs

Despite their image as free traders, six leading British classical and neoclassical economists formulated a valid theoretical argument for tariffs. They showed that a suitably small tariff could, under certain conditions, benefit the levying country by improving its terms of trade. They also stressed the insuperable practical difficulties of implementing such optimum tariffs. These difficulties plus the likelihood of foreign retaliation convinced them that free trade was the best policy after all.
Economic Review , Volume 73 , Issue Jul , Pages 17-28

Report
The Uruguay Round of GATT trade negotiations

Research Paper , Paper 9119

Working Paper
Do donors care about declining trade revenues from liberalization? an analysis of aid allocation

Many developing country governments rely heavily on trade tax revenue. Therefore, trade liberalization can be a potential source of significant fiscal instability, and may affect government spending on development activities. Donor nations may take this into account in making their aid allocation decisions for developing nations. Our findings suggest that bilateral donors provide substantially larger amounts of aid to compensate (or reward) liberalizing recipient nations who also face declining trade tax revenues. Interestingly, these effects are statistically insignificant in the context of ...
Working Papers , Paper 2007-028

Working Paper
Cross-border lobbying in preferential trading agreements: implications for external tariffs

This paper examines the effect of cross-border lobbying on domestic lobbying and on external tariffs in both Customs Union (CU) and Free Trade Area (FTA). We do so by developing a two-stage game which endogenizes the tariff formation function in a political economic model of the directly unproductive rent-seeking activities type. We find that cross-border lobbying unambiguously increases both domestic lobbying and the equilibrium common external tariffs in a CU. The same result also holds for FTA provided tariffs for the member governments are strategic complements. We also develop a specific ...
Working Papers , Paper 2009-041

Discussion Paper
The role of trade in technology diffusion

This paper develops a two-country model in which trade is central to the process by which technology diffuses from the innovating country (North) to the backward country (South). Innovation in North leads to the introduction of higher-quality equipment goods that South can import only after some resources have been spent to adapt those equipment goods to the local conditions of South. Barriers to trade and policies that increase the cost of adapting equipment goods to the local environment decrease the rate of technology adoption, leading to a lower steady state relative income level in ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 114

Working Paper
Trade policy opinions at the state level

Despite economists' nearly universal support for free trade policies, the general public has serious reservations about free trade. To understand this opposition, one must understand the preferences of individuals as they relate to the policy choices of policymakers. Ideally, one would like to know how these preferences differ across regions because legislators who represent their constituents in the U.S. Congress cast the actual votes on trade policies. The present study produces estimates by state of trade preferences linked directly to individual preferences. ; Scheve and Slaughter (2001a) ...
Working Papers , Paper 2001-006

Journal Article
Intra-firm trade and U.S. protectionism: thoughts based on a small survey

New England Economic Review , Issue Jan , Pages 42-51

Journal Article
United States-Japanese trade: predictions using selected economic models

New England Economic Review , Issue May , Pages 26-37

Journal Article
U.S. regional trade with Canada during the transition to free trade

This article examines the U.S. and Canadian responses to the early years of the U.S.-Canada Free Trade Agreement from a U.S. regional perspective. It draws on a highly detailed data base from Statistics Canada. Although the article discusses which regions enjoyed the fastest growth in trade with Canada over this period, and why, the major focus of the study is the impact of increased integration on the nature of trade and investment flows between the two countries. The author explores, for example, whether trade has expanded on the basis of comparative resource endowments or has taken the ...
New England Economic Review , Issue Jan , Pages 3-21

Journal Article
NAFTA: fast forward?

Regional Review , Issue Sum , Pages 25-26

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