Work

Cooperation in WTO’s Tariff Waters?

Year: 2018

Type: article

Abstract: This paper examines the extent to which tariff cooperation is observed among World Trade Organization members. With the help of a simple political economy model, we show that tariffs are positively correlated with the importer’s market power when they are set noncooperatively but negatively correlated when set cooperatively. We use this prediction to empirically identify the extent of cooperation in the WTO and find that more than three-quarters of WTO members’ tariffs are set noncooperatively.

Source: Journal of Political Economy

DOI: 10.1086/697085

Authors: Alessandro Nicita, Marcelo Olarreaga, Peri Silva

Institutions: United Nations Conference on Trade and Development, University of Geneva, Fondation pour les Études et Recherches sur le Développement International, Kansas State University, Centro Studi Luca d’Agliano

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Funder: Agence Nationale de la Recherche

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