<< N°143
| N°143 | ||
| Issue Q3 2015 | ||
| A simple model of the juggernaut effect of trade liberalisation | ||
|
Richard Baldwin Frédéric Robert-Nicoud |
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| This paper posits a political economy model where (i) reciprocity in multilateral trade talks results in a one-off tariff cut below their unilateral level because reciprocal trade talks turn each nation?s exporters into anti-protectionists at home and (ii) this one-off global tariff is self-reinforcing because it reshapes the political economy landscape via entry and exit. |
Abstract |
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| Reciprocal trade liberalisation ; Juggernaut effect ; | Keywords | |
| O16 ; | JEL classification | |
| Order form |