We present a theory of why some countries negotiate trade agreements during economic downturns. We argue that political leaders can gain from such agreements because of the signals they send to their publics. Publics are less likely to blame leaders for bad economic conditions when they have implemented sound economic policies, such as signing and implementing agreements designed to liberalize ...

The paper focuses on regional trade agreements and economic co-operation and develops a new appropriate approach to study their impact on growth and trade. The approach is based on an endogenous trade-growth theory and novelly specified in an economic integration (expenditure) framework which is the conceptual foundation of regional trade agreements. Importantly, it also appropriately takes int...

Rules governing the global environment and the international economy are currently decided in separate arenas. Yet, environmental agreements can have strong economic implications, particularly with the growing use of market mechanisms. Economic liberalization rules, meanwhile, may limit the effectiveness of environmental agreements. This paper assesses the potential interaction between one impo...