Protectionist Responses to the Crisis: Global Trends and Implications

Matthieu Bussière, E. P rez-Barreiro, Roland Straub and Daria Taglioni ()
Authors registered in the RePEc Author Service: Matthieu Bussière and Emilia Pérez Barreiro

Working papers from Banque de France

Abstract: In this paper we take a systematic look at recent trends in global protectionism and at the potential implications of a protectionist backlash for economic growth, using results from the recent economic literature and new model simulations. We find that there has so far been a moderate increase in actual protectionist measures to restrict trade through tariff and non-tariff barriers. At the same time, evidence from surveys shows that public pressure for more economic protection has been mounting since the mid-2000s, and has possibly intensified since the start of the financial crisis. However, no World Trade Organization (WTO) member has retreated into widespread trade restrictions or protectionism to date. Our model-based simulations suggest that the impairment of the global flow of trade would hamper the recovery from the crisis, as well as the long-term growThéof the global economy. At the same time, it is unlikely that protectionism would help to correct existing current account imbalances. Moreover, the countries implementing protectionist measures should expect a deterioration of their international competitiveness, which would further affect the potential for longer-term real GDP growth.

Keywords: Protectionism; trade; financial crisis; competitiveness; World Trade Organization; global imbalances. (search for similar items in EconPapers)
JEL-codes: F13 F15 F21 F53 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2011
New Economics Papers: this item is included in nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Protectionist Responses to the Crisis: Global Trends and Implications (2011)
Working Paper: Protectionist responses to the crisis – global trends and implications (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:319

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