Neue Ökonomische Geographie - Neue Argumente gegen den Freihandel?

Michael Pflüger

Chapter 2 in List Forum Band 31, 2005, vol. 1, pp 13-32 from List Gesellschaft e.V.

Abstract: Taking the perspective of the new economic geography, this paper studies trade policy and the rationale to deviate from free trade, in particular. It is shown that protectionism, through unilaterally favorable under some circumstances, does not lead to welfare gains, in general. A list of qualifications and reservations is presented. Countries are better off by seeking reciprocal trade liberalisation. The theories of the new economic geography indicate that multilateral trade liberalisation (pursued in asymetric way) has some advantages compared to the path of reciprocity in preferential trade agreements.(Original text only available in german language)

Keywords: International trade; economic geography; trade policy; free trade (search for similar items in EconPapers)
Date: 2005
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