Show simple item record

dc.contributor.authorRichardson, Martinen_NZ
dc.date.available2011-04-07T03:05:06Z
dc.date.copyright2001-02en_NZ
dc.identifier.citationRichardson, M. (2001). Unilateral liberalisation in a multilateral world (Economics Discussion Papers Series No. 102). University of Otago. Retrieved from http://hdl.handle.net/10523/829en
dc.identifier.urihttp://hdl.handle.net/10523/829
dc.description.abstractRecent years have seen a great deal of trade liberalisation worldwide, particularly via the vehicles of regionalism and bilateralism. Certainly, the focus of analysts and policy economists has been firmly on these means of liberalisation. At the same time, however, many countries have also chosen to liberalise their international trade regimes unilaterally. Only recently have analysts begun to focus on unilateralism as a means of trade liberalisation: see Bhagwati (1999). But why would countries wish to choose this route to liberalise? Standard economic analysis can explain it for small countries (where the mystery is then why it is such a recent phenomenon) but for large countries it appears simply to sacrifice some “bargaining power”. This paper considers a number of reasons why unilateralism – meant here to indicate liberalisation as opposed to its more common current use indicating increased trade barriers (see Ethier (1998) – may be attractive to countries, both large and small. We first look at arguments in a standard, neoclassical setting before turning to political economy contexts. What effects, if any, does liberalisation through other multilateral means have on the incentive to liberalise unilaterally? We argue that one of the most important sets of reasons for unilateral reforms is precisely that it occurs in an environment of multilateral liberalisation. We discuss some theoretical reasons for this before looking briefly at two recent cases. The first is the APEC experience which we argue is best thought of as a qualified unilateralism and the second is recent experience in New Zealand where unilateralism has been a leading means of liberalisation. We suggest that unilateralism has been almost necessary for New Zealand, by virtue of the breadth of its microeconomic reform programme. A final section concludes.en_NZ
dc.format.mimetypeapplication/pdf
dc.publisherUniversity of Otagoen_NZ
dc.relation.ispartofseriesEconomics Discussion Papers Seriesen_NZ
dc.relation.urihttp://www.business.otago.ac.nz/econ/research/discussionpapers/index.htmlen_NZ
dc.subjectliberalisationen_NZ
dc.subjectliberalise unilaterallyen_NZ
dc.subjectNew Zealanden_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHB Economic Theoryen_NZ
dc.titleUnilateral liberalisation in a multilateral worlden_NZ
dc.typeDiscussion Paperen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages18en_NZ
otago.date.accession2007-04-13en_NZ
otago.schoolEconomicsen_NZ
otago.openaccessOpen
otago.place.publicationDunedin, New Zealanden_NZ
dc.identifier.eprints635en_NZ
otago.school.eprintsEconomicsen_NZ
dc.description.referencesBagwell, K. and R. Staiger, 1997, GATT-Think. mimeo, Columbia University (available at http://www.columbia.edu/~kwb8/gatt-think.pdf.) Bagwell, K. and R. Staiger, 1999, Regional and multilateral tariff cooperation. In J. Piggott and A. Woodland (eds.), International trade policy and the Pacific rim. The Macmillan Press (for the International Economic Association), London. Bhagwati, J., 1988, Protectionism. MIT Press, Cambridge MA. Bhagwati, J., (ed.), 1999, Relaxed reciprocity: historical and modern experience with unilateral trade liberalization. MIT Press, under review. Bond, E. and C. Syropoulos, 1996, The size of trading blocs: market power and world welfare. Journal of International Economics 40, 411-37. Coates, D. and R. Ludema, 1997, Unilateral trade liberalization as leadership in trade negotiations. Working Paper 97-23, Department of Economics, Georgetown University, Washington DC. Ethier, W., 1998, The international commercial system. Princeton Essays in International Finance No. 210, Princeton University, Princeton NJ. Ethier, W., 1999, Multilateral roads to regionalism. In J. Piggott and A. Woodland (eds.), International trade policy and the Pacific rim. The MacMillan Press (for the International Economics Association), London. Evans, L., A. Grimes, B. Wilkinson and D. Teece, 1996, Economic Reform in New Zealand 1984-95: the pursuit of efficiency. Journal of Economic Literature 34, 1856-902. Evans, L., A. and M. Richardson, 1999, Trade reforms in New Zealand: unilateralism at work. In J. Bhagwati (ed.), Relaxed reciprocity: Historical and modern experience with unilateral trade liberalization. MIT Press, under review. Garnaut, R., 1998a, Open regionalism: its analytic basis and relevance to the international system. In R. Garnaut (ed.), Open regionalism and trade liberalization. Allen&Unwin (for Institute of Southeast Asian Studies), Sydney, Australia. Garnaut, R., 1998b, Open Regionalism: reality shapes an idea. In R. Garnaut (ed.), Open regionalism and trade liberalization. Allen & Unwin (for Institute of Southeast Asian Studies), Sydney, Australia. Gros, D., 1987, A note on the optimal tariff, retaliation and the welfare loss from tariff wars in a framework with intra-industry trade. Journal of International Economics 23 #3/4, 357-67. Grossman, G. and E. Helpman, 1994, Protection for sale. American Economic Review 84, 833-50. Hillman, A., 1989, The Political Economy of Protection. Harwood Academic Publishers, Chur Switzerland. Hillman, A., and P. Moser, 1996, Trade liberalization as politically optimal exchange of market access. In M. Canzoneri, W. Ethier and V. Grilli (eds.), The New Transatlantic Economy. Cambridge University Press (for CEPR), Cambridge, UK. Krugman, P., 1991, Is bilateralism bad? In E. Helpman and A. Razin (eds.), International Trade and Trade Policy. MIT Press, Cambridge MA. Lattimore, R. and P.Wooding, 1996, International trade. In A.Bollard, R.Lattimore and B.Silverstone (eds.) A study of economic reform: the case of New Zealand. North-Holland, Amsterdam. Mayer, W., 1974, Endogenous tariff formation. American Economic Review 74 #5, 970-85. Mayer, W., 1981, Theoretical considerations on negotiated tariff adjustments. Oxford Economic Papers 33, 135-43. McCulloch, R., 1997, Unilateral and reciprocal trade reforms in Latin America. mimeo, Graduate School of International Economics and Finance, Brandeis University, Waltham, MA. Raimondos-Moller, P. and A. Woodland, 1997, Are optimal tariffs for small economies always zero? mimeo, EPRU, Copenhagen Business School. Richardson, M., 1993, Endogenous protection and trade diversion. Journal of International Economics 34, 309-24. Richardson, M., 1995, Tariff revenue competition in a free trade area. European Economic Review 39, 1429-37. Vautier, K.M. and P.J. Lloyd, 1997, International Trade and Competition Policy: CER, APEC and the WTO. Institute of Policy Studies, Wellington. Winters, L.A., 1996, Regionalism versus multilateralism. Policy Research Working Paper No. 1687, World Bank, Washington DC. World Trade Organization, 1996, Trade policy review: New Zealand. World Trade Organization, Geneva.en_NZ
otago.relation.number102en_NZ
 Find in your library

Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record