Self-Enforcing Trade Agreements: Evidence from Time-Varying Trade Policy

By C. Bown, Meredith A. Crowley. 2010

137 citations recorded by the source corpus.

The Bagwell and Staiger (1990) theory of cooperative trade agreements predicts new tariffs (i) increase with imports, (ii) increase with the inverse of the sum of the import demand and export supply elasticities, and (iii) decrease with the variance of imports. The authors find US import policy during 1997-2006 to be consistent with this theory. A one standard deviation increase in import growth, the inverse of the sum of the import demand and export supply elasticity, and the standard deviation of import growth changes the probability that the US imposes an antidumping tariff by 35 percent, by 88 percent, and by -76 percent, respectively.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/281717ec30d584e1700ce45a326f8c7ba8efbe14

Citations in the corpus

• Is the WTO Passé (2015, unknown): “…Staiger show that an escape clause of this kind is a feature of an optimal self-enforcing trade agreement for governments with moderate patience.61 Bown and Crowley (2013a) provide a rst empirical investigation of the cross-sectional and intertemporal predictions of the Bagwell-Staiger (1990)…”