Would Protectionism Defuse Global Imbalances and Spur Economic Activity? A Scenario Analysis

Hamid Faruqee (), Douglas Laxton, Dirk Muir () and Paolo A. Pesenti

No 12704, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In the evolving debate and analysis of global imbalances, a commonly overlooked issue pertains to rising protectionism. This paper attempts to fill that gap, examining the macroeconomic implications of trade policy changes through the lens of a dynamic general equilibrium model of the world economy encompassing four regional blocs. Simulation exercises are carried out to consider the imposition of uniform and discriminatory tariffs on trading partners as well as the case of tariff retaliation. We also discuss a scenario in which a 'globalization backlash' lowers the degree of competition in import-competing sectors, and compare the implications of higher markups in the product and labor markets.

JEL-codes: E66 F32 F47 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-mac
Date: 2006-11
Note: IFM ITI
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w12704.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: Would Protectionism Defuse Global Imbalances and Spur Economic Activity? A Scenario Analysis (2006)
Working Paper: Would protectionism defuse global imbalances and spur economic activity?: a scenario analysis (2006)
Journal Article: Would protectionism defuse global imbalances and spur economic activity? A scenario analysis (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:12704

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w12704
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().