Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57621
Authors: 
Ossa, Ralph
Year of Publication: 
2009
Series/Report no.: 
WTO Staff Working Paper ERSD-2009-08
Abstract: 
I develop a novel theory of GATT/WTO negotiations. This theory provides new answers to two prominent questions in the trade policy literature: first, what is the purpose of trade negotiations? And second, what is the role played by the fundamental GATT/WTO principles of reciprocity and nondiscrimination? Relative to the standard terms-of-trade theory of GATT/WTO negotiations, my theory makes two main contributions: first, it builds on a 'new trade' model rather than the neoclassical trade model and therefore sheds new light on GATT/WTO negotiations between similar countries. Second, it relies on a production relocation externality rather than the terms-of-trade externality and therefore demonstrates that the terms-of-trade externality is not the only trade policy externality, which can be internalized in GATT/WTO negotiations.
Subjects: 
GATT/WTO
new trade theory
JEL: 
F12
F13
Document Type: 
Working Paper

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