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Profits in the “New Trade” Approach to Trade Negotiations

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Abstract:

I highlight two advantages of adopting a “new trade” approach to trade negotiations. First, it allows for a view of trade negotiations in which producer interests play a prominent role. And second, it lends itself naturally to quantitative analyses of non-cooperative and cooperative trade policy. My specific focus is on profit shifting effects through which countries can gain at the expense of one another.

Document Type: Research Article

DOI: https://doi.org/10.1257/aer.102.3.466

Publication date: 2012-05-01

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