NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Quantitative Analysis of Multi-Party Tariff Negotiations

Kyle Bagwell, Robert W. Staiger, Ali Yurukoglu

NBER Working Paper No. 24273
Issued in February 2018
NBER Program(s):Industrial Organization Program, International Trade and Investment Program

This paper develops a model of international tariff negotiations to study the design of the institutional rules of the GATT/WTO. We embed a multi-sector model of trade between multiple countries into a model of inter-connected bilateral negotiations over tariffs. Using 1990 trade flows and tariff outcomes from the Uruguay Round of GATT/WTO negotiations, we estimate country-sector productivity levels, sector-level productivity dispersion, iceberg trade costs, and country-pair bargaining parameters. We use the estimated model to simulate an alternative institutional setting for multilateral tariff negotiations in which the most-favored-nation requirement is abandoned. We find that abandonment of the most-favored-nation requirement would result in inefficient over-liberalization of tariffs and a deterioration in world-wide welfare relative to the negotiated outcomes in the presence of the most-favored-nation requirement.

download in pdf format
   (480 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w24273

Users who downloaded this paper also downloaded* these:
Gu and Prasad w24266 New Evidence on Cyclical Variation in Labor Costs in the U.S.
Goldfarb and Trefler w24254 AI and International Trade
Goldberg and Krogstrup w24286 International Capital Flow Pressures
Feenstra and Hanson w5121 Foreign Investment, Outsourcing and Relative Wages
Frankel and Wei Regionalization of World Trade and Currencies: Economics and Politics
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us