Much trade liberalization involves large and small countries. This paper presents a formal comparison of the economic welfare effects for the small and large country from unilateral free trade by the small country, from a free trade agreement, and from preferential access to the large country’s market. I show that it matters for the welfare effects of these strategies whether the small country ...

Globalization is integration of national economies in global economy and infers on increasing the flow of goods and services. In this study the consequences of globalization were studied through the analysis of Level of International Trade index (LIT) in the caviar export equation. The required data were gathered from Statistical Yearbook of Foreign Trade, Statistical Yearbook of fisheries, Sta...

How do domestic political institutions affect the outcomes of international trade negotiations? Specifically, are the aggregate trade barriers agreed upon by a democratic pair lower than those by a pair composed of a democracy and an autocracy? I revisit these important questions by highlighting some problematic aspect of the analysis by Mansfield, Milner, and Rosendorff (2000). Contrary to the...

Food security is increasingly influenced by multilateral trade systems and foreign trade policies implemented by national governments. Many of them are now concerned about the sustainability of food supply and the vulnerability of domestic food markets to price volatility, and seek to support domestic producers and protect themselves from increasing food imports. Such restrictions improve food ...

In this paper, analysis is presented relating to the impact of border tax adjustments for climate policy on the international competitiveness of energy-intensive industries, and the related problem of carbon leakage. While many of the economic and legal issues are not particularly new, climate policy does present some possible twists to the analysis of border tax adjustments when vertically-rel...

We extend the trade model with firm heterogeneity developed by Melitz and Ottaviano (2008), incorporating domestic and imported intermediate goods, in order to investigate the impact of import barriers on final and intermediate goods on firms’ decisions to produce and to export. Our main contribution is to disentangle the channels through which these trade policies work. When variable trade cos...

In an international oligopoly model, this paper investigates interaction between trade liberalization in goods and liberalization in service FDI. Since some services are market-specific and have non-tradable nature, a foreign firm has a higher cost in service provisions compared to its domestic competitor and it can overcome the disadvantage by either outsourcing services to the domestic compet...