EconPapers    
Economics at your fingertips  
 

(When) Does Tit-for-Tat Diplomay in Trade Policy Pay Off?

Barbara Dluhosch () and Daniel Horgos
Additional contact information
Barbara Dluhosch: Helmut Schmidt University, Hamburg, Postal: Helmut Schmidt University Hamburg – University FAF Hamburg, Department of Economics, Holstenhofweg 85, 22043 Hamburg, Germany

No 116/2012, Working Paper from Helmut Schmidt University, Hamburg

Abstract: In international relations, short-run incentives for non-cooperation often dominate. Yet, (external) institutions for enforcing cooperation are hampered by national sovereignty, supposedly strengthening the role of selfenforcing mechanisms. This paper examines their scope with a focus on contingent protection aka tit-for-tat in trade policy. By highlighting various strategies in a (linear) partial-equilibrium framework, we show that retaliation of noncooperative behavior by limiting market access works as a disciplining device independently of supply and demand parameters. Our theoretical results are backed by empirical evidence that countries more frequently involved in WTO-mediated disputes entailing tit-for-tat strategies pursue on average more liberal trade regimes.

Keywords: Int. Political Economy; Trade Policy Conflicts; Tit-for-Tat; WTO Dispute Settlement (search for similar items in EconPapers)
Pages: 48 pages
Date: 2012-03-26
New Economics Papers: this item is included in nep-int and nep-pol
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.hsu-hh.de/fgvwl/index_jxtg3c5J2svNui1O.html Full text (application/pdf)

Related works:
Journal Article: (When) Does Tit-for-tat Diplomacy in Trade Policy Pay Off? (2013) Downloads
Working Paper: (When) Does Tit-for-Tat Diplomacy in Trade Policy Pay Off? (2012) Downloads
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:ris:vhsuwp:2012_116

Access Statistics for this paper

More papers in Working Paper from Helmut Schmidt University, Hamburg Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Bekcmann ().

 
Page updated 2022-09-25
Handle: RePEc:ris:vhsuwp:2012_116