Enlarging the Vision for Trade Policy Space: Special and Differentiated Treatment and Infant Industry Issues

World Economy ◽  
2006 ◽  
Vol 29 (10) ◽  
pp. 1395-1407 ◽  
Author(s):  
Patrick A. Messerlin
Keyword(s):  
Trade Policy ◽  
Policy Space ◽  
Infant Industry

scholarly journals Competitive Economic Development of The Republic of Moldova

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Perchinschi Natalia ◽  
Gribincea Alexandr
Keyword(s):  
Trade Policy ◽  
Trade Agreement ◽  
Temporary Increase ◽  
Trade Barriers ◽  
Company Town ◽  
Restrictive Trade ◽  
Infant Industry ◽  
The Republic ◽  
The One ◽  
A Company

With this general framework in mind, this section has explained through various examples the circumstances in which economic theory would justify a temporary increase in trade barriers – even above the level of commitments in a trade agreement. These circumstances include when an import surge provides an argument for an increase in trade barriers as well as when a change in demand or supply or in policy leads to a sharp contraction for a particular sector and this, in turn, has a negative externality (like in the case of the one-company town). Another argument for trade policy intervention is when something alters the degree of competition in the market – for example, if a company indulges in predatory dumping. Other circumstances include developing countries providing support to infant industry, action to address balance of payment crises, and responding to a sharp increase in the world price of a product. In all these cases, the adoption of restrictive trade policy can be justified as a second-best option.

TRADE POLICY SPACE AND EXPORT PRODUCT DIVERSIFICATION

2020 ◽  
Vol 65 (06) ◽  
pp. 1727-1752
Author(s):  
SÈNA KIMM GNANGNON
Keyword(s):  
Trade Policy ◽  
Positive Impact ◽  
Quantitative Measure ◽  
Product Diversification ◽  
Policy Space ◽  
Aid For Trade ◽  
The Impact ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

This paper provides a quantitative measure of the concept of trade policy space, at the macroeconomic level, and examines its impact on export product diversification. Trade policy space has been defined as the room of manoeuvre available to a government once its current trade policy is depurated from the impact of structural domestic and international factors. The analysis has been carried out using an unbalanced panel dataset comprising 165 countries (both developed and developing countries) over the period 2002–2015. Results suggest that trade policy space is positively associated with export product diversification, and the higher countries’ development level, the greater is the magnitude of the positive effect of trade policy space on export product diversification. The analysis further shows for recipient-countries of Aid for Trade (AfT) flows that trade policy space is complementary with AfT inflows in inducing export product diversification. In particular, the higher the amounts of AfT inflows that accrue to these countries, the greater is the positive impact of trade policy space on export product diversification in AfT recipient-countries.

scholarly journals Trade policy space and foreign direct investment inflows

2020 ◽  
Vol 30 (3) ◽  
pp. 323-343
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Foreign Direct Investment ◽  
Trade Policy ◽  
Direct Investment ◽  
Quantitative Measure ◽  
Policy Space ◽  
Data Set ◽  
Fdi Inflows ◽  
Content Type ◽  
Advanced Economies ◽  
The Impact

Purpose This study aims to use a quantitative measure of trade policy space to investigate empirically whether trade policy space influences foreign direct investment (FDI) flows to countries. Design/methodology/approach The empirical analysis covers an unbalanced panel data set of 158 countries, over the period 1995–2015 and uses the two-step system generalized methods of moments approach. Findings The results suggest that the impact of trade policy space on FDI inflows is positive and increases as countries enjoy greater trade policy space. Furthermore, advanced economies tend to experience a higher positive impact of trade policy space on FDI inflows than less advanced economies. Research limitations/implications These findings highlight the relevance of trade policy space for countries’ FDI inflows. Practical implications The analysis shows that non-trade related constraints to trade policy could reduce trade policy space and adversely influence FDI inflows, which are critical for countries’ economic growth and development. Originality/value To the best of the knowledge, this topic has not been addressed in the literature.

scholarly journals A Review of the Strength of Trade Polices in Emerging Economies towards their Goals of Sustainable Economic Development

2021 ◽  
Vol 3 (3) ◽  
Author(s):  
Rahat Sabah
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Economic Development ◽  
Trade Policy ◽  
Developing Economies ◽  
Trade Policies ◽  
Economic Sectors ◽  
Sustainable Economic Development ◽  
Policy Tool ◽  
Infant Industry

Purpose: The study aims to offer a review of trade policies and Export Processing Zones (EPZs) policies and their outcomes in developing economies. The EPZs are presented as a trade policy tool by using which the developing economies trying to pursue export-led growth policy can also achieve the goals of sustainable economic development. Design/Methodology/Approach: The study has followed qualitative research design using literature review logical and qualitative text analysis to critically summarize the trade theories, policies and growth theories specially the EPZs based trade policy in developing countries. Finding: The study has revealed that the developing countries are enhancing their economic growth and expanding their economic sectors through international trade. The mercantilist trade policies under infant industry argument or others have not been much successful in spurring long term growth. EPZs are identified as a strategic trade policy tool by which developing countries can achieve economic growth and sustainable development goals (SDGs). Implications/Originality/Value: It is concluded that the infant-industry idea has not helped developing countries regarding economic growth and development. The findings presented herein are useful for political leaders and economic managers in developing countries aspiring to achieve economic growth and SDGs.

Trade Policy Space and Production Diversification in Developed and Developing Countries

2019 ◽  
Vol 10 (02) ◽  
pp. 1950006 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Trade Policy ◽  
Empirical Analysis ◽  
Trade Agreements ◽  
Regional Trade Agreements ◽  
Policy Space ◽  
Regional Trade ◽  
The Empirical Analysis

This paper examines the effect of trade policy space on production diversification, and particularly on industrialization. We define trade policy space as the extent of constraints imposed by non-trade obligations, and possibly bilateral and regional trade agreements on the current trade policy stance. Thus, the lower the extent of these constraints, the higher is the available trade policy space to promote production diversification and particularly on industrialization. The empirical analysis uses a sample of 159 countries, over the period 1995–2015, and shows that trade policy space is conducive to production diversification and industrialization, although the effect could vary across sub-samples.

Policy rivalry among industrial states: what can we learn from models of strategic trade policy?

1989 ◽  
Vol 43 (1) ◽  
pp. 73-100 ◽  
Author(s):  
Klaus Stegemann
Keyword(s):  
Trade Policy ◽  
International Markets ◽  
Policy Implications ◽  
Strategic Trade Policy ◽  
International Context ◽  
Strategic Trade ◽  
Strategic Manipulation ◽  
Infant Industry ◽  
Economics Profession ◽  
Spencer Model

The economic theory of international trade has changed dramatically over the last decade by admitting into its mainstream a body of literature that focuses on the implications of monopolistic and oligopolistic elements in international markets. By applying the tools of the “new” industrial organization in an international context, two new classes of models have emerged: models of intra-industry trade and models of strategic trade policy. The policy implications of models of strategic trade policy were quite disturbing for the economics profession, since these models demonstrated that the classical harmony between national and cosmopolitan welfare maximization does not exist if one assumes opportunities for strategic manipulation of oligopolistic international industries. This article reviews two prominent models of strategic trade policy—the Brander-Spencer model and the Krugman model—and relates them to more familiar earlier concepts, such as Stackelberg's asymmetrical duopoly solution and the venerable infant-industry argument for government intervention. The primary purpose of this article, however, is to provide a synopsis of the large literature addressing the question of whether models of strategic trade policy can give guidance for government policy.

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