The role of the most favored nation principle of the GATT/WTO in the New Trade model

2020 ◽  
Vol 28 (3) ◽  
pp. 760-798
Author(s):  
Wisarut Suwanprasert
Keyword(s):  
Most Favored Nation ◽  
Trade Model

Trade and Labor Market Dynamics: General Equilibrium Analysis of the China Trade Shock

Econometrica ◽  
2019 ◽  
Vol 87 (3) ◽  
pp. 741-835 ◽  
Author(s):  
Lorenzo Caliendo ◽  
Maximiliano Dvorkin ◽  
Fernando Parro
Keyword(s):  
Labor Markets ◽  
Equilibrium Analysis ◽  
Trade Model ◽  
China Trade ◽  
Transition Costs ◽  
Long Run ◽  
Labor Market Dynamics ◽  
And Migration ◽  
Labor Dynamics

We develop a dynamic trade model with spatially distinct labor markets facing varying exposure to international trade. The model captures the role of labor mobility frictions, goods mobility frictions, geographic factors, and input‐output linkages in determining equilibrium allocations. We show how to solve the equilibrium of the model and take the model to the data without assuming that the economy is at a steady state and without estimating productivities, migration frictions, or trade costs, which can be difficult to identify. We calibrate the model to 22 sectors, 38 countries, and 50 U.S. states. We study how the rise in China's trade for the period 2000 to 2007 impacted U.S. households across more than a thousand U.S. labor markets distinguished by sector and state. We find that the China trade shock resulted in a reduction of about 0.55 million U.S. manufacturing jobs, about 16% of the observed decline in manufacturing employment from 2000 to 2007. The U.S. gains in the aggregate, but due to trade and migration frictions, the welfare and employment effects vary across U.S. labor markets. Estimated transition costs to the new long‐run equilibrium are also heterogeneous and reflect the importance of accounting for labor dynamics.

scholarly journals Food and nutrition security under global trade: a relation-driven agent-based global trade model

2021 ◽  
Vol 8 (1) ◽  
pp. 201587
Author(s):  
Jiaqi Ge ◽  
J. Gareth Polhill ◽  
Jennie I. Macdiarmid ◽  
Nuala Fitton ◽  
Pete Smith ◽  
...  
Keyword(s):  
Food Security ◽  
Global Trade ◽  
Agent Based ◽  
Food And Nutrition Security ◽  
Nutrition Security ◽  
Trade Model ◽  
Food And Nutrition ◽  
Macro And Micronutrients ◽  
The Impact

This paper addresses the highly relevant and timely issues of global trade and food security by developing an empirically grounded, relation-driven agent-based global trade model. Contrary to most price-driven trade models in the literature, the relation-driven agent-based global trade model focuses on the role of relational factors such as trust, familiarity, trade history and conflicts in countries' trade behaviour. Moreover, the global trade model is linked to a comprehensive nutrition formula to investigate the impact of trade on food and nutrition security, including macro and micronutrients. Preliminary results show that global trade improves the food and nutrition security of countries in Africa, Asia and Latin America. Trade also promotes a healthier and more balanced diet, as countries have access to an increased variety of food. The effect of trade in enhancing nutrition security, with an adequate supply of macro and micronutrients, is universal across nutrients and countries. As researchers call for a holistic and multifactorial approach to food security and climate change (Hammond and Dubé 2012 Proc. Natl Acad. Sci. USA 109 , 12 356–12 363. ( doi:10.1073/pnas.0913003109 )), the paper is one of the first to develop an integrated framework that consists of socio-economic, geopolitical, nutrition, environmental and agri-food systems to tackle these global challenges. Given the ongoing events of Brexit, the US–China trade war and the global COVID-19 pandemic, the paper will provide valuable insights on the role of trade in improving the food and nutrition security across countries.

scholarly journals Putting the MFN Genie Back in the Bottle

AJIL Unbound ◽  
2018 ◽  
Vol 112 ◽  
pp. 60-63
Author(s):  
Michael Waibel
Keyword(s):  
International Law ◽  
International Investment ◽  
Third Party ◽  
Most Favored Nation ◽  
Trade Regime ◽  
Investment Treaty ◽  
Limited Role ◽  
Investment Treaties ◽  
Text Context

This essay underscores the importance of background understandings in general international law for interpreting brief, open-ended clauses such as most favored nation (MFN) clauses. Contrary to Simon Batifort and J. Benton Heath's claim, I suggest that often interpreters of MFN clauses cannot limit themselves to the text, context, and preparatory materials of a specific MFN clause. A common international negotiating technique, including for investment treaties, is to rely on the general background understanding of what a clause typically means in international law—its default meaning. I also argue that MFN clauses have played a surprisingly limited role in the international investment regime to date. In the main, they have functioned as a stepping stone for procedural and substantive guarantees found in third-party investment treaties. This use, and the limited role of MFN clauses in investment treaty awards, stands in sharp contrast to MFN clauses in the trade regime.

Recognizing Complexity in Eastern Europe : a Case for Differentiating Among Communist States

1984 ◽  
Vol 11 (1) ◽  
pp. 191-208
Author(s):  
Daniel N. Nelson
Keyword(s):  
Foreign Policy ◽  
Eastern Europe ◽  
Democratic Republic ◽  
The Political ◽  
Most Favored Nation ◽  
Warsaw Pact ◽  
1960S And 1970S ◽  
The 1960S ◽  
Differential Relations

AbstractAlthough Moscow's security interests define the limits of foreign policy behavior and domestic liberalization in Eastern Europe. American relations with communist Europe in the 1960s and 1970s differentiated between and among member states of the Warsaw Pact. A policy of differential relations with communist Europe is a policy of sensitivity to complexity—to the differences between, for example, the role of Romania vis-à-vis the German Democratic Republic (GDR) in the Warsaw Pact. A finely tuned foreign policy requires such sensitivity to avoid broad and erroneous categorizations that portray American international views as irretrievably simple. Were we to distance ourselves as far from Bucharest as from Moscow, we would be ignoring the qualities that led to visits by Presidents Nixon and Ford to Bucharest and which encouraged Most Favored Nation (MFN) status for Romania. A policy which distinguishes among communist states and leaders contrasts with the simplistic view that Soviet manipulation is total, and rejects the dichotomy that East Europeans are either puppets or national patriots, with no choice between. The political worlds of leaders and citizens in these states are much more complex, and we require a policy premised on such complexity.

scholarly journals TECHNOLOGY, TRADE, AND GROWTH: THE ROLE OF EDUCATION

2015 ◽  
Vol 20 (5) ◽  
pp. 1381-1394 ◽  
Author(s):  
Klaus Prettner ◽  
Holger Strulik
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Trade Openness ◽  
Industrialized Countries ◽  
Economic Prosperity ◽  
Trade Model ◽  
Cross Country ◽  
Globalized World ◽  
Trade And Growth

We generalize a trade model with firm-specific heterogeneity and R&D-based growth to allow for endogenous education and fertility. The framework is able to explain cross-country differences in living standards and trade intensities by the differential pace of human capital accumulation among industrialized countries. Consistent with the empirical evidence, scale matters for relative economic prosperity as long as countries are closed, whereas scale does not matter in a fully globalized world. The average human capital of a country, by contrast, influences its relative economic prosperity irrespective of trade-openness.

scholarly journals The Enduring but Unwelcome Role of Party Intent in Treaty Interpretation

AJIL Unbound ◽  
2018 ◽  
Vol 112 ◽  
pp. 44-48
Author(s):  
Andrea K. Bjorklund
Keyword(s):  
International Law ◽  
Decision Makers ◽  
Vienna Convention ◽  
Most Favored Nation ◽  
Treaty Interpretation ◽  
The Law ◽  
Investment Treaties

Party “intent” is not one of the tools that the Vienna Convention on the Law of Treaties (VCLT) gives to treaty interpreters. To be sure, party intent is presumably reflected in the “object and purpose” of the treaty, but it is not a separate criterion; in fact, the VCLT implicitly excludes party intent from playing an interpretive role. Yet many decision-makers, counsel, and academics persistently look to party intent for guidance when interpreting treaties. The most favored nation (MFN) debate illustrates why party intent endures as an interpretive touchstone: treaty language, even when analyzed in context and in light of the convention's object and purpose, does not always lead to clear answers. Both Simon Batifort and J. Benton Heath and Stephan Schill, in their different ways, depart from traditional VCLT analysis and hark to party intent as a reason to endorse a modified approach to treaty interpretation. Yet they also illustrate why party intent is an imperfect tool: party intent is too malleable to be a conclusive guide to treaty meaning.

scholarly journals Spirit of Capitalism and Conspicuous Consumption with Social Status in a Neoclassical Growth Trade Model

2016 ◽  
Vol 6 (1) ◽  
pp. 70
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Social Status ◽  
Conspicuous Consumption ◽  
Physical Capital ◽  
Wealth Accumulation ◽  
Trade Patterns ◽  
Dynamic Interactions ◽  
Trade Model ◽  
Spirit Of Capitalism

<p class="ber">This study deals with dynamic interactions among social status, conspicuous consumption, spirit of capitalism, global growth, trade patterns, and inequalities in income and wealth between countries. The paper constructs a multi-country growth model with endogenous physical capital, wealth accumulation and social status. The modelling of social status is influenced by the ideas related to economic growth and social status in the literature of economic growth. This study analyzes the role of conspicuous consumption by assuming that social status is enhanced by more consumption and the role of the spirit of capitalism (of some goods) by assuming that social status is enhanced by more wealth. The global economic system consists of any number of countries and each country has one capital goods sector and one consumer goods sector. This study applies an alternative utility function proposed by Zhang to analyze household behavior. The countries differ in preferences, spirits of capitalisms, and productivities. We show that the dynamics of -country world economy is described by  differential equations. We simulate the motion of the model with three countries and carry out comparative dynamic analysis with regard to some parameters.</p>

Trade and Trade Policy for Development by Staffan Burenstam Linder. New York; Washington; London: Frederic A. Praeger, 1967. pp.xi + 179.

1968 ◽  
Vol 8 (3) ◽  
pp. 500-503
Author(s):  
Hymen P. Minsky
Keyword(s):  
New York ◽  
Developing Countries ◽  
Trade Policy ◽  
Balance Of Payments ◽  
Excess Capacity ◽  
Trade Theory ◽  
Trade Model ◽  
Internal Equilibrium ◽  
Capacity Output

Linder's theme is that conventional trade theory, as set out in the theories of comparative advantage and the compatibility of internal and external equilibrium, as well as the traditional free trade rules for trade policy are not valid for developing countries. He creates a trade model for developing countries in which internal equilibrium, in the sense of capacity income, and external (balance-of-payments) equilibrium are not compatible. Under these circumstances the need to satisfy the external equilibrium requirement dominates; this leads to a reduction of domestic output below capacity output. The existence of excess capacity in the midst of economic backwardness effectively retards continued investment and economic growth. Thus, the role of trade policy is to facilitate the achievement of capacity output

Apple's agency model and the role of most-favored-nation clauses

2017 ◽  
Vol 48 (3) ◽  
pp. 673-703 ◽  
Author(s):  
Øystein Foros ◽  
Hans Jarle Kind ◽  
Greg Shaffer
Keyword(s):  
Most Favored Nation ◽  
Agency Model
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