Going Alone: The Case for Relaxed Reciprocity in Freeing Trade
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Going Alone: The Case for Relaxed Reciprocity in Freeing Trade
One of the longstanding questions in international economics is how to get a country with an economy mired in import protection to one characterized by free trade. Reciprocity and unilateralism are the two most popular answers that economists propose. Unilateralism, or “going alone” with trade liberalization, is the standard policy prescription for a small country that, by definition, cannot af...
متن کاملRevised version published in Jagdish Bhagwati (ed.), Going Alone: The Case for Relaxed Reciprocity in Freeing Trade, MIT Press, 2002, pp. 395-441. 15 August 2000 UNILATERAL AND RECIPROCAL TRADE REFORM IN LATIN AMERICA
The economic landscape of Latin America in 1980 had been shaped by decades of protectionism and import-substituting industrialization. Although Chile initiated wide-ranging trade reforms in 1974, the early results had done little to encourage emulation by other nations in the region, as Chile endured years of double-digit unemployment. Argentina had also reduced trade barriers beginning in 1976...
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We use detailed trade, tariff, and income data for countries involved in 91 trade agreements negotiated since 1980 to test for reciprocity in free trade agreements. The results offer strong evidence of reciprocity in North-North and South-South free trade agreements, but there is little empirical support for reciprocity in North-South trade agreements. In particular, after controlling for other...
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ژورنال
عنوان ژورنال: The Economic Journal
سال: 2003
ISSN: 0013-0133,1468-0297
DOI: 10.1046/j.0013-0133.2003.172_3.x