2013

Why the WTO? An Introduction to the Economics of Trade Agreements

Reprint No. 2013:42

Author(s): Gene M. Grossman and Henrik HornYear: 2013 Title: Legal and Economic Principles of World Trade Law Editor(s): Henrik Horn and Petros C. MavroidisPublisher: Cambridge University PressCity: Cambridge, UK Pages: 9–67
Online article (restrictions may apply)
Preliminary version


The purpose of this study is to present to readers with limited training in economics the perspective that most international trade economists bring to the study of trade agreements. It focuses on the main approach in the literature, which sees these agreements as means to address negative international externalities that would arise from unilateral determination of trade policies. The study argues that this approach may help explain salient features of trade agreements in general, and of the GATT in particular, such as their reciprocal nature, the need for trade agreements to be self-enforcing, and the inevitable contractual incompleteness of trade agreements. The study also discusses the main critiques that have been directed against this popular approach.


Reference:
Grossman, Gene M. and Henrik Horn (2013), "Why the WTO? An Introduction to the Economics of Trade Agreements". Pp. 9–67 in Henrik Horn and Petros C. Mavroidis, eds., Legal and Economic Principles of World Trade Law. Cambridge, UK: Cambridge University Press.

Henrik Horn

Contact

Ph: +46 8 665 4540
henrik.horn@ifn.se

Interdisciplinary European Studies

The European Union in a Changing World Order

Pages-from-2019-Oxelheim-m.gif

This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se