Trade Policy

Patrick Low

E523 | Autumn | 6ECTS
 

This course begins with a recapitulation of the core insights of international trade theory. It then examines trade policy instruments (trade taxes, quotas, subsidies and non-tariff barriers) and their effects, both within a standard neoclassical framework of analysis and in the context of imperfect markets. It will consider the objectives and consequences of different and alternative trade policy interventions, including interventions pursued for public policy reasons (such as health, safety and the environment). The discussion will also cover the role of trade policy in developing countries. The analysis will be complemented by a consideration of the political economy aspects of trade policy and the role of international negotiations in policy formulation. The course will also deal with the institutional context (WTO, regional institutions) in which international trade policy is made. This course assumes some familiarity with trade theory.