Results-Oriented Trade Policy

Wilfred Ethier () and Henrik Horn

Review of International Economics, 1996, vol. 4, issue 1, 17-39

Abstract: We construct a model of economic policy determination by an executive who controls a domestic policy instrument and who can influence, but not completely control, the conduct of trade policy. The executive exploits a political linkage between the policies. These circumstances can motivate implementation of a results-oriented trade policy by the government of a trading partner. We analyze the implications of such a policy under alternative situations. Copyright 1996 by Blackwell Publishing Ltd.

Date: 1996
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