A "new trade" theory of GATT/WTO negotiations

Ralph Ossa

No ERSD-2009-08, WTO Staff Working Papers from World Trade Organization (WTO), Economic Research and Statistics Division

Abstract: I develop a novel theory of GATT/WTO negotiations. This theory provides new answers to two prominent questions in the trade policy literature: first, what is the purpose of trade negotiations? And second, what is the role played by the fundamental GATT/WTO principles of reciprocity and nondiscrimination? Relative to the standard terms-of-trade theory of GATT/WTO negotiations, my theory makes two main contributions: first, it builds on a 'new trade' model rather than the neoclassical trade model and therefore sheds new light on GATT/WTO negotiations between similar countries. Second, it relies on a production relocation externality rather than the terms-of-trade externality and therefore demonstrates that the terms-of-trade externality is not the only trade policy externality, which can be internalized in GATT/WTO negotiations.

Keywords: GATT/WTO; new trade theory (search for similar items in EconPapers)
JEL-codes: F12 F13 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/57621/1/639587348.pdf (application/pdf)

Related works:
Journal Article: A "New Trade" Theory of GATT/WTO Negotiations (2011)
Working Paper: A 'New Trade' Theory of GATT/WTO Negotiations (2010)
Working Paper: A 'New Trade' Theory of GATT/WTO Negotiations (2008)
Working Paper: A 'new trade' theory of GATT/WTO negotiations (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: https://EconPapers.repec.org/RePEc:zbw:wtowps:ersd200908

DOI: 10.30875/dfceab11-en

Access Statistics for this paper

More papers in WTO Staff Working Papers from World Trade Organization (WTO), Economic Research and Statistics Division Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().