Working Paper: CEPR ID: DP9783
Authors: Simon J. Evenett
Abstract: This paper provides an account of the resort in recent years by governments in the Asia Pacific region to discrimination against foreign commercial interests. As in previous systemic economic crises, policymakers altered the mix of discriminatory policies employed. This time around governments of higher income economies in the region frequently softened the budget constraints of firms, offering a range of financial incentives that went beyond high-profile bank sector bailouts. Meanwhile, many developing countries in the Asia Pacific relied more on traditional forms of protectionism. The result is a more fragmented set of markets in the Asia Pacific region than before the crisis.
Keywords: No keywords provided
JEL Codes: F13; F53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| GFC (F53) | increase in discriminatory policies against foreign commercial interests (F13) |
| GFC (F53) | shift in policy tools used by governments (E65) |
| incomplete WTO rules (F13) | rise in protectionist measures (F52) |
| high-income economies (O56) | more financial support measures (E64) |
| developing countries (O10) | more traditional forms of protectionism (F13) |
| substantial tariff binding overhang (F14) | leeway to raise tariffs (F13) |