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Ivan Trofimov, Kolej Yayasan Saad (KYS) Business School, Ayer Keroh, Malaysia

Systemic Analysis of Trade Liberalisation: Policy Entreprenuership and Behavioural Variables in a Two-Legal Game Framework

Volume 70 - Issue 2, May 2017
(pp. 217-244)
JEL classification: C70, F13, F51, L26
Keywords: Policy Entrepreneurship, Two-Level Games, Trade Policy


This paper presents a synthetic framework for the analysis of bilateral trade liberalisation process. It extends usual two-level game model (allowing interplay between domestic trade policy and GATT/WTO negotiation), and incorporates policy entrepreneurship processes (leadership, recombination, consensus-building), behavioural variables (intensity of interest in policy issue, attitudes towards gains and losses and cooperation), as well as systemic forces behind protectionist policies. The factors that determine the path, timing and outcome of the trade policy negotiation are tied in a formal model. The results point to the complementarity and mutual dependence of the factors, and the necessity to simultaneously attend to them during negotiation process. We also show that the success of trade liberalisation hinges upon readiness of the policy system for reform and prior exercise of advocacy and consensus building.

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Institute for International Economics
of the Genoa Chamber of Commerce

Istituto di Economia Internazionale
Camera di Commercio di Genova
Via Garibaldi, 4 (III piano) - 16124 Genova (Italy)