Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/29355
Authors: 
Year of Publication: 
2009
Series/Report no.: 
Economics Discussion Papers No. 2009-55
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Globalisation is associated with long periods of sustained economic growth and credit expansion, whereas major recessions tend to lead to falling trade and protectionism. The sensitivity of trade to global economic conditions is not simply driven by policy: rather, in a model of costly search, firms who are engaged in a searching process are very sensitive to changing economic circumstances. In turn, this causes protectionism to be partly endogenous, since optimal noncooperative tariffs can be high during periods when the sensitive, searching firms have exited the market.
Subjects: 
Globalisation
trade
search
JEL: 
F15
F43
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
324.28 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.