Handbook of International Trade: Economic and Legal Analyses of Trade Policy and Institutions, Volume II

589 Pages·2004·3.98 MB·English

Handbook of International Trade
Volume II
Blackwell Handbooks in Economics
HandbookofInternationalMacroeconomics
EditedbyFrederickvanderPloeg
HandbookofEnvironmentalEconomics
EditedbyDanielW.Bromley
HandbookoftheEconomicsofInnovationandTechnologicalChange
EditedbyPaulStoneman
HandbookofAppliedEconometrics,Vol.I:Macroeconomics
EditedbyM.HashemPesaranandMichaelR.Wickens
HandbookofAppliedEconometrics,Vol.II:Microeconomics
EditedbyM.HashemPesaranandPeterSchmidt
HandbookofInternationalTrade
EditedbyE.KwanChoiandJamesHarrigan
HandbookofInternationalTrade,Vol.II:
EconomicandLegalAnalysesofTradePolicyandInstitutions
EditedbyE.KwanChoiandJamesC.Hartigan
Handbook of
International
Trade
Volume II
Economic and Legal Analyses
of Trade Policy and
Institutions
Edited by
E. Kwan Choi and
James C. Hartigan
©2004byBlackwellPublishingLtd
exceptforeditorialmaterialandorganization©2004byE.KwanChoiand
JamesC.Hartigan
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Handbookofinternationaltrade/editedbyE.KwanChoiandJamesHarrigan.
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1.Internationaltrade. I.Choi.EunKwan.1946–. II.Harrigan.James. III.Series.
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Contents
ListofFigures vii
ListofTables ix
ListofContributors xi
Introduction 1
E.KwanChoiandJamesC.Hartigan
1 WhatisFreeTrade?:TheRorschachTestattheHeartoftheTrade
andEnvironmentDebate 5
DavidM.Driesen
2 RulesofPowerinanAgeofLaw:ProcessOpportunismandTRIPS
DisputeSettlement 42
RuthL.Okediji
3 TeachingOldLawsNewTricks:TheLegalObligationof
Non-AttributionandtheNeedforEconomicRigorinInjuryAnalyses
UnderUSTradeLaw 73
JamesP.DurlingandMatthewP.McCullough
4 Trade-RelatedLaborandEnvironmentRightsAgreements? 107
ChantalThomas
5 AComparativeAnalysisofComplianceInstitutionsinInternational
TradeLawandInternationalEnvironmentalLaw 134
BrettFrischmann
6 TheNationalTreatmentPrincipleinInternationalTradeLaw 185
MichaelJ.TrebilcockandShivaK.Giri
vi Contents
7 DonotAskTooManyQuestions:TheInstitutionalArrangementsfor
AccommodatingRegionalIntegrationwithintheWTO 239
PetrosConstantinosMavroidis
8 TradeandInformalInstitutions 279
JamesE.Anderson
9 TheEconomicsofPreferentialTradeAgreements 294
PravinKrishna
10 Conditionality,Separation,andOpenRulesinMultilateralInstitutions 313
PaolaConconiandCarloPerroni
11 AntitrustPolicyinOpenEconomies:PriceFixingandInternationalCartels 333
EricW.Bond
12 ModernCommercialPolicy:ManagedTradeorRetaliation? 358
ThomasJ.PrusaandSusanSkeath
13 AntidumpingversusAntitrust:TradeandCompetitionPolicy 383
IanWootonandMaurizioZanardi
14 TradeandtheGlobalizationofPatentRights 403
RodFalvey,FeliMartinez,andGeoffReed
15 MixedMarketswithCounterfeitProducers 427
E.KwanChoi
16 EndogenousInjury 459
JamesC.Hartigan
17 InternationalTradeinServices:MoreThanMeetstheEye 472
LawrenceJ.White
18 TheDynamicEffectsofTradeLiberalizationandEnvironmental
PolicyHarmonization 499
LarryKarpandJinhuaZhao
19 DoBilateralTaxTreatiesPromoteForeignDirectInvestment? 526
BruceA.BlonigenandRonaldB.Davies
Index 547
Figures
Figure9.1 Tradecreatingtariffpreferences:changeinwelfare=(3+4) 296
Figure9.2 Tradedivertingtariffpreferences:changeinwelfare=(3−2) 297
Figure9.3 Change in welfare for home = −(1 + 2 + 3 + 4); change in 299
welfare for partner = (1 + 2 + 3); and change in welfare for
union=−(4)
Figure11.1 Profitablecarteloutputsfornh =nf =2 336
Figure11.2 Efficientfrontiersatth =0(B(cid:1)C(cid:1))andth >0(D(cid:1)E(cid:1)) 337
Figure11.3 Sustainableprofitlevelswithδ =0.7(DEFG)andδ =0.5(IJK) 340
Figure12.1 Worldwideuseofantidumping,1980–98 362
Figure12.2 Antidumpingactionsconsistentwithalternativehypotheses 369
Figure12.3 Traditionalusers(SpecificationB,allyears) 376
Figure12.4 Traditionalusers(SpecificationB,firstthreeyears) 377
Figure12.5 Newusers(SpecificationB,allyears) 378
Figure12.6 Newusers(SpecificationB,firstthreeyears) 379
Figure13.1 CountrieswithADlawsandmembershipofGATT/WTO(asof 385
December31,2001)
Figure13.2 ThegeographyofADlaws 386
Figure13.3 ADinitiationsfrom1980,distinguishingnontraditionalusers 387
Figure13.4 Average tariffs and definitive AD measures for nontraditional 390
users
Figure14.1 Patentprotectionunderautarky 406
Figure14.2 Welfareeconomicsofproductpatentsinatwo-countrymodel 409
Figure15.1 RiskaversionandNashequilibrium 434
Figure15.2 LawenforcementandNashequilibrium 438
Figure15.3 Adverseeffectoflawenforcement 438
Figure15.4 Stackelbergequilibrium 440
Figure15.5 Entryofnewcounterfeiters 443
Figure15.6 Long-runNashequilibrium 444
Figure15.7 Long-runsurvivalofaStackelbergmonopolist 445
Figure15.8 Duopolyequilibriumwithcounterfeiters 447
viii Figures
Figure18.1 Possibilitiesofsteadystates.(a)Autarkyand(b)Trade 507
Figure18.2 Structureoftheeconomy 510
Figure18.3 Theextractionfunction:δ >δ 512
1 2
Figure18.4 Possibilitiesofgoingfromautarkytotrade 515
Figure18.5 Resourcedynamicswithmultiplesteadystates.(a)Autarky: 518
ηˆa <η <η∗a and(b)Trade:ηˆ <η <η∗
Figure18.6 Possiblerankingschemesofcriticalηvalues 519
Tables
Table3.1 Estimatingtheeffectofpriceofimportsonthedomesticprice 91
ofcold-rolledsheet
Table3.2 Magnitude of different factors in explaining domestic price 97
declines
Table12.1 Antidumpingactivity:1980sversus1990s 363
Table12.2 Probitregression:SpecificationA 371
Table12.3 Probitregression:SpecificationB 372
Table12.4 Probitregression:SpecificationC 373
Table12.5 Probitregression:SpecificationD 374
Table13.1 Antidumpinginitiations,1995–9 388
Table13.2 Targetsofantidumpinginitiations,1995–9 389
Table13.3 Stagesofbilateralintegration 397
Table17.1 TotalWorldTrade,1980–2000 480
Table17.2 Worldtradebyregions,1980–2000 481
Table17.3 Tenleadingcountryexportersandimportersofgoodsandservices, 482
2000
Table17.4 Majorcategoriesoftradeinservicesandtenleadingcountry 483
exporters/importers,2000
Table17.5 UStradeinservices,1992–2002 484
Table17.6 Salesofservicesthroughnonbankmajority-ownedaffiliates,2001 485
Table17.7 Aggregatesalesofservicesthroughnonbankmajority-owned 486
affiliates,1986–2001
Table19.1 FDIdatacoveragebyOECDcountry 533
Table19.2 Descriptivestatisticsofvariables 535
Table19.3 NewtreatiesbyOECDcountriesfrom1983–92 537
Table19.4 EstimatedtreatyeffectsonOECDoutboundFDIstockandflows 538
usingOLS
Table19.5 EstimatedtreatyeffectsonOECDoutboundFDIstockandflows 541
usingfixedeffects
Contributors
James E. Anderson received his BA from Oberlin College and his PhD from the
UniversityofWisconsin,andhasspenthiscareeratBostonCollege.Hehaspublished
extensivelyonthetheoryofinternationaltradeandtradepolicy.Inrecentyears,hehas
focusedoninvisibletradecostssuchasthoseassociatedwithlow-qualityinstitutions,
andinparticularontheendogeneityofsuchcosts.
BruceA.BlonigenistheKnightProfessorofSocialScienceintheEconomicsDepart-
mentattheUniversityofOregon.HereceivedhisPhDineconomicsin1995fromthe
UniversityofCalifornia-Davis.Whilecompletinghisdissertation,healsoworkedasan
economistfortheResearchDivisionoftheOfficeofEconomicsattheUSInternational
Trade Commission. Prof. Blonigen has research interests in empirically examining
international trade issues from a microeconomic and political economy perspective,
especially with respect to multinational corporations and antidumping policies. His
workhasbeenpublishedinsuchjournalsastheAmericanEconomicReview,Reviewof
EconomicsandStatistics,andtheJournalofInternationalEconomics.Prof.Blonigen
isalsoanAssociateEditorfortheJournalofInternationalEconomicsandaResearch
AssociatewiththeNationalBureauofEconomicResearch.
EricW.BondistheJoeRobyProfessorofEconomicsatVanderbiltUniversity.Hehas
writtenonanumberoftopicsininternationaltrade,includingthedesignofinternational
tradeagreements,thestrategicinteractionsbetweentradingblocs,andthetaxationof
foreigninvestment.HereceivedhisPhDfromtheUniversityofRochesterin1979.
E.KwanChoiisProfessorofEconomicsatIowaStateUniversity.Heiscurrentlythe
editorofReviewofInternationalEconomicsandReviewofDevelopmentEconomics.
HehaspublishedarticlesinQuarterlyJournalofEconomicsandJournalofPolitical
Economy,aswellaseditedEconomicGrowthandInternationalTrade(BlackwellPub-
lishing,2000)andHandbookofInternationalTrade(volumeI,BlackwellPublishing,
2004).
Paola Conconi’s research interests are in the areas of International Trade, Regional
Integration, Environmental Economics, and Political Economy. She is a Professor of