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Offshoring and the Role of Trade Agreements

Year: 2012

Type: article

Abstract: The rise of offshoring of intermediate inputs raises important questions for commercial policy. Do the distinguishing features of offshoring introduce novel reasons for trade policy intervention? Does offshoring create new problems of global policy cooperation whose solutions require international agreements with novel features? In this paper we provide answers to these questions, and thereby initiate the study of trade agreements in the presence of offshoring. We argue that the rise of offshoring will make it increasingly difficult for governments to rely on traditional GATT/WTO concepts and rules—such as market access, reciprocity and non-discrimination—to solve their trade-related problems. (JEL F12, F13, L24)

Source: American Economic Review

DOI: 10.1257/aer.102.7.3140

Authors: Pol Antràs, Robert W Staiger

Institutions: National Bureau of Economic Research, Harvard University, Harvard University Press, University of Wisconsin–Madison, Stanford University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: green

OpenAlex ID: W3126095053

FWCI: 24.07

Cites: 43

Cited by: 301

Related to: 10