NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A 'New Trade' Theory of GATT/WTO Negotiations

Ralph Ossa

NBER Working Paper No. 16388
Issued in September 2010
NBER Program(s):   ITI

I suggest a novel theory of GATT/WTO negotiations based on the Krugman (1980) "new trade" model. It emphasizes international production relocations and is easy to calibrate to bilateral trade data. Focusing on the major players in recent GATT/WTO negotiations, I find that it implies reasonable noncooperative tariffs as well as moderate gains from GATT/WTO negotiations.

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Document Object Identifier (DOI): 10.3386/w16388

Published: “A “ New Trade ” Theory of GATT/WTO Negotiations” Journal of Political Economy 119(1):122 - 152 , February 2011

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