Working Paper: CEPR ID: DP3845
Authors: Arye L. Hillman
Abstract: This Paper presents a survey of the literature on trade liberalization and globalization. The questions are why trade liberalization occurred, why trade liberalization took the form of reciprocity combined with multilateralism, why the liberalization allows for protectionist policies, and why there is opposition to the globalization of markets that has occurred as the consequence of liberalization.
Keywords: environment; exchange of market access; globalization; labour standards; multilateralism; preferential trade; public interest; regionalism; special interests; trade liberalization; WTO
JEL Codes: F13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reciprocal trade liberalization (F13) | improved market access for exporters (F10) |
| improved market access for exporters (F10) | increased incomes (E25) |
| reciprocal trade liberalization (F13) | enhanced political visibility of benefits for export sectors (F14) |
| reciprocal actions (D16) | better outcomes for domestic exporters (F10) |
| trade liberalization (F13) | increased income inequality (D31) |
| globalization processes (F60) | declining real incomes for unskilled labor (F66) |
| introduction of new technologies (O33) | substitution of unskilled labor with skilled labor (J24) |