Working Paper: NBER ID: w22070
Authors: Gene M. Grossman
Abstract: This paper reviews the literature on governments' motivations for negotiating and joining international trade agreements. I discuss both normative explanations for trade agreements and explanations based on political-economy concerns. Most of the paper focuses on the purpose of multilateral agreements, but I do discuss briefly the reasons we might see governments forming preferential or regional trade agreements that exclude some countries.
Keywords: No keywords provided
JEL Codes: F13; F53; K33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Governments negotiate trade agreements (F13) | Internalize international externalities (F69) |
| Non-cooperative government actions (D70) | Imposition of tariffs (F13) |
| Imposition of tariffs (F13) | Negative effects on citizens of other countries (F69) |
| Imposition of tariffs (F13) | Suboptimal welfare outcomes (D69) |
| Trade agreements facilitate exchanges of tariff concessions (F13) | Align interests of governments with citizens (H10) |
| Trade agreements (F13) | Enhance political efficiency (D72) |
| Trade agreements (F13) | Improved welfare outcomes (I39) |