A Theory of Trade Policy Transitions / Renee Bowen, J. Lawrence Broz, B. Peter Rosendorff.

Format:

Book

Author/Creator:

Bowen, Renee.

Contributor:

National Bureau of Economic Research.

Broz, J. Lawrence.

Rosendorff, B. Peter.

Series:

Working Paper Series (National Bureau of Economic Research) no. w31662.

NBER working paper series no. w31662

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

Trade policy is set by domestic political bargaining between globalists and protectionists, representing owners of factors specific to export and import-competing sectors respectively. Consistent with the post-Civil War Era of Restriction, protectionists implement high tariffs when status quo tariffs are low. When status quo tariffs are high, reciprocal free trade combined with domestic transfers to protectionists are implemented, explaining the 1930s Era of Reciprocity with Re- distribution. Consensus emerges for Retreat from free trade when imports are high and domestic transfers are low, suggesting that US protectionist turn in the late 2010s was in part due to low levels of social transfers.

Notes:

Print version record

September 2023.