The presumed success of Japanese post-war industrial policy has been used to advocate similar policies in other countries. Key to such arguments then is the empirical demonstration of the policies’ effects. This column presents research making use of a novel dataset that allows controlling for industry heterogeneity across many disaggregated industries. The effects of the quota removal on productivity were significantly positive, while the effects of tariffs on labour productivity were insignificant.
Kozo Kiyota, Tetsuji Okazaki, Monday, January 6, 2014
Lawrence Edwards, Robert Z. Lawrence, Wednesday, November 20, 2013
Preferential import policies that allow developing markets to export to advanced economies are intended to dynamically promote development rather than just provide basic gains from trade. This column argues that the Africa Growth and Opportunities Act achieves the latter but not the former, distorting incentives along the value-added chain. While beneficial, preferential trade deals are not a panacea and are certainly not a replacement for pro-development policies.
Matthias Helble, Ganeshan Wignaraja , Wednesday, November 13, 2013
Intensifying negotiations leading to the December WTO Ministerial Conference in Bali have renewed optimism for concluding the beleaguered Doha Round and boosting Asia’s trade. Agreement in Bali on tariff-quota administration, trade facilitation, and food security would improve the prospects for a Doha deal and WTO credibility. Failure at Bali, however, would spur the rise of mega-regional trade agreements – to the detriment of countries outside these agreements.
Hylke Vandenbussche, Jozef Konings, Wednesday, January 30, 2013
The rise of international production sharing – ‘global value chains’ – has transformed international commerce and pushed economists into new territory. This column argues that there is evidence to suggest that old-fashioned protection can have an unexpected negative effect on firms that are part of a global value chain. In an increasingly globalised world, exporters’ success seems to positively depend on the free entry of imports rather than the other way round.
Vera Thorstensen, Lucas Ferraz, Emerson Marçal, Sunday, December 4, 2011
Persistent exchange-rate misalignments have created trade frictions worldwide. This column argues that the WTO should adopt trade rules that allow nations to neutralise the effects of exchange-rate misalignments. Otherwise, the WTO might become a diplomatic-juridical fiction.
Kishore Gawande, Bernard Hoekman, Yue Cui, Thursday, November 10, 2011
The Great Trade Collapse of 2008–09 did not give rise to rampant protectionism. This column examines the determinants of the observed pattern of trade-policy responses to the 2008 crisis, using data for seven large emerging markets that have a history of active use of trade policy. Vertical specialisation is found to be the most powerful economic factor determining trade-policy responses.
Pushan Dutt, Daniel Traça, Thursday, June 25, 2009
Would reducing corruption increase trade? While corrupt customs officials extorting bribes from exporters may impede trade, those who take bribes to circumvent formal trade barriers may help it. This column estimates that when tariffs exceed 25%, the pro-trade effects of corruption may dominate.
David Laborde Debucquet, Antoine Bouët, Thursday, May 14, 2009
The current financial crisis has fostered a demand for protectionism and put the Doha Round at the back of the agenda. This column argues that a failed Doha Development Agenda would send the wrong signal in terms of global governance and could lead to an unravelling of the past 15 years of trade liberalisation.
Richard Newfarmer, Elisa Gamberoni, Wednesday, March 4, 2009
Trade protection is on the rise around the world and risks pushing the economy into prolonged contraction. Officials have proposed more than 60 new trade restrictions since the beginning of the financial crisis. While a serious outbreak of protectionism has yet to occur, vigilance and leadership are required.
Natalie Chen, Dennis Novy, Tuesday, January 27, 2009
This column assesses trade costs for manufacturing industries in the EU. It demonstrates that, although tariffs on trade within the EU were abolished decades ago, significant barriers remain, and countries continue to integrate. Today, the most substantial policy-induced costs are technical barriers to trade, such as packaging and labelling requirements.
Hylke Vandenbussche, Maurizio Zanardi, Friday, February 8, 2008
Political divisions among EU member states seem to have derailed the reform process envisaged by Mr Mandelson, the EU Trade Commissioner, for the most important of the EU’s trade defence instruments – antidumping. Here is a discussion of antidumping and what a minimal proposal for reforms should include.
Simon J Evenett, Saturday, December 15, 2007
If the US and EU continue down the path of confronting China directly, they will face a choice between piecemeal trade actions that highlights the divergence between their words and deeds, or the imposition of a blatantly WTO-illegal restriction on Chinese exports that would ruin their reputations as good WTO members.
Hiau Looi Kee, Alessandro Nicita, Marcelo Olarreaga, Wednesday, July 18, 2007
Trade openness matters, so the measurement of trade restrictiveness matters. Commonly used measures, however, are deeply flawed. New research, using theory-based measures, has generated two new global databases on the restrictiveness of trade policy at the most disaggregated level.