We use global tariffs to reveal the weights that nations implicitly place on the welfare of their trading partners relative to their own. Our estimated welfare weights suggest that formal and informal rules of the world trading system make countries internalize the impact of their policies onto...

We study the sustainability of international trading rules in a multipolar world. A rules-based equilibrium is shaped by three forces. A static temptation to exploit market power undermines cooperation, while two dynamic forces support it: the efficiency gains from rules and the cost of...

The second administration of United States President Donald Trump has shaken the foundations of the multilateral trading system by implementing unilateral tariffs on imports from most of its partners, and by signing 'deals' with a few of them. It is impossible to legally reconcile these actions...

Members of the World Trade Organization are increasingly disregarding its rules, raising concerns about the future of the multilateral trading system. To analyze the sustainability of the rules-based trade regime, we develop a dynamic framework of stochastic asynchronous games where the leading...

How do shifts in the global balance of power shape the world economy? We propose a theory of alignment-based “hegemonic globalization”, built on two central premises: countries differ in their preferences over policies (such as the rule of law or regulatory frameworks) and trade between any...

How do shifts in the global balance of power shape the world economy? We propose a theory of alignment-based “hegemonic globalization,” built on two central premises: countries differ in their preferences over policies (such as the rule of law or regulatory frameworks) and trade between any...

China-India relations, which have long been fraught, were further complicated by the 2020 military standoff on the Himalayan border. The political disruption had a significant impact on Chinese companies' presence in India. And yet, India's dependence on Chinese imports has increased since. The...

Massive protests against - and spectacular failures of - international trade negotiations are an important element of the globalization backlash developed economies have experienced over the last two decades. We analyze a model of endogenous social identity where the government chooses between...

The current global trade order is disrupted for many reasons. The Covid-19, the Russian war against Ukraine and the all-front tariff war initiated by the United States are most outstanding factors to the disrupted global trade flows. This paper discussed shaping factors of and presented four...

The current crisis in the international trading system has led many to ask whether Asia can succeed where the WTO has failed. The purpose of this paper is to discuss the possibility of stronger regional trade ties as a result of the turmoil in the WTO. It is argued that, given its size and...

The second Trump administration's tariff regime has triggered a profound transformation of the global trade architecture, extending beyond traditional protectionism to a systematic dismantling of multilateral institutions. This paper examines how the collapse of trust in US trade commitments and...

The following material is a transcription of a discussion among the contributors to and organizers of the Round Table on the topic: Will a New Global Trade System or a Stronger Asian Free Trade Arrangement Emerge against the United States' Aggressive Tariff Regime? A Political Economy Approach

Lack of advance information about regulatory changes in destination markets increases uncertainty over compliance costs. This paper quantifies the value of advance notification using newly compiled WTO Technical Barriers to Trade (TBT) timelines matched to detailed French...

International trade appears to be strongly dependent on the political environment and institutional arrangements. In this context, the commented strand of economics is expected to follow the relationships that can be turbulent. The paper reviews the available literature on international trade,...

The international trading system is under threat. Many observers have already expressed serious concerns about the impact of Covid, the war in Ukraine, tensions over Taiwan and other natural and man-made disasters and their effects on the international trading system. Some even doubt its...

Die anstehenden US-Präsidentschaftswahlen sind wegweisend. Sollte Donald Trump wiedergewählt werden, hat er im Bereich der Handelspolitik umfangreiche Zollerhöhungen - auch gegenüber der Europäischen Union (EU) - angedroht. Die EU hat angekündigt, im Zweifel mit eigenen Vergeltungszöllen...

This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a...