When:
Monday, November 23, 2020 4:00 PM
-
5:30 PM
Moynihan Institute of Global Affairs
Trade, Development and Political Economy presents
Interdependence of
Trade Policies in General Equilibrium
If governments are
banned from using certain trade policy instruments, they may resort to other
instruments to compensate for their lost policy space. Using a multi-industry
general-equilibrium Ricardian trade model the authors find that: (i)
Restricting export subsidies/taxes leads to trade liberalization, but
restricting import tariffs in isolation has no such effect; (ii) If export
subsidies are already restricted, negotiated tariff cuts in a subset of
industries lead to unilateral cuts in other industries; and (iii) A free trade
agreement that precludes the use of trade taxes may lead to the adoption of
wasteful trade barriers by welfare-maximizing governments. Fitting our model to
trade data for 40 major countries, we show that these effects are
quantitatively significant.
Mostafa Beshkar
Indiana University - Bloomington
Mostafa Beshkar is Associate Professor of Economics at
Indiana University – Bloomington. His research and teaching interests center on
International Trade, with a special emphasis on trade policy and institutions
for international trade cooperation. Professor Beshkar’s work has appeared in
top Economics field journals such as the Journal of International
Economics and general interest journals like the American Economic Journal:
Microeconomics. He holds a Ph.D. in Economics from Vanderbilt University.
Click here to register
For more information, please contact Devashish Mitra, dmitra@syr.edu or to request additional accommodation arrangements, please contact Morgan Bicknell, mebickne@syr.edu.