Political Commitment Theory of Trade Agreements

Tang and Wei (JIE, 2009) found that countries which undertook more stringent tariff reductions as part of their accession to the WTO subsequently had higher growth. Explain how these results support or refute the political- commitment theory of trade agreements. The political commitment theory of trade agreements argues that trade agreements arise due to the Read more about Political Commitment Theory of Trade Agreements[…]

International Trade and Economic Growth

Does international trade increase economic growth? In this context, what are the trade policies that have been followed by developing countries? Standard textbook economic theory tells us that international trade benefits both parties in the trade, based on the gains from comparative advantage as laid out by David Ricardo. However, recent research into New Trade Read more about International Trade and Economic Growth[…]