DP11151 The Purpose of Trade Agreements
|Author(s):||Gene M. Grossman|
|Publication Date:||March 2016|
|Keyword(s):||international cooperation, multilateralism, regionalism, Trade agreements, trade pacts|
|JEL(s):||F13, F53, K33|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=11151|
This paper reviews the literature on governments' motivations for negotiating and joining international trade agreements. I discuss both normative explanations for trade agreements and explanations based on political-economy concerns. Most of the paper focuses on the purpose of multilateral agreements, but I do discuss briefly the reasons we might see governments forming preferential or regional trade agreements that exclude some countries.