Alan V. Deardorff
University of Michigan
International tradeEconomicsTrade barrierInternational economicsFree trade
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Publications 213
This paper documents the presence of "sensitive sectors" in Free Trade Agreements, defined as sectors for which the within-FTA tariffs remain positive. The paper includes some brief theoretical discussion of the welfare implications of these, but the main emphasis is on reporting two measures of this phenomenon for countries in FTAs that entered into force between 1994 and 2003. One measure is the percentage of tariff lines that remain dutiable, and the second is the change, from before the FTA ...
Almost all participants in free trade agreements (FTAs) exclude at least a few products or sectors from complete tariff removal on the exports of their FTA partners. The positive tariffs that remain within an FTA are often the highest tariffs that the countries apply on an MFN basis. It seems plausible that such exclusions may be chosen because the domestic producers of these products are viewed as especially vulnerable to competition from imports from the partner country. In brief, they are esp...
#1Alan V. Deardorff (UM: University of Michigan)H-Index: 44
ABSTRACTThis article provides three-good, three-country examples of trade in both intermediate inputs and final goods. These show the adverse effects that rules of origin (ROOs) can have, even in a world where every country has a free trade agreement (FTA) with every other country. ROOs may cause ubiquitous FTAs to yield a level of welfare, for everyone, that is worse than if there were no FTAs at all, and all trade were subject to common nondiscriminatory tariffs. Thus, the move to an ever incr...
2 CitationsSource
This paper examines the effects of a fall in the price of an imported good in a region of a country that is specialized in producing that good. The context is a Olumpy countryO model in which factors are unable to move between locations, although in this case I assume that only labor is immobile, and that the other factor, capital, is perfectly mobile between regions. With mobile capital, the lumpy-country equilibrium can be anywhere in the factor-price equalization set, but my focus is on a reg...
#1Alan V. DeardorffH-Index: 44
Digital trade takes a variety of forms, several of which are examined here with regard to whether they can be explained by comparative advantage. The five forms of digital trade considered are 1) physical products that are advertised, ordered, and/or paid for digitally, but transported by normal trade means; 2) digital products (music, movies, books, software) that are transmitted to purchasers via the internet and are most likely to be marketed and paid for via that as well; 3) services that ar...
#1Alan V. DeardorffH-Index: 44
#2Robert M. SternH-Index: 37
#1Alan V. Deardorff (UM: University of Michigan)H-Index: 44
I explore how the concept of Othe terms of tradeO has been used since it was coined by Marshall. Early writers (Taussig, Viner, Dorrance) constructed variations on the relative price of traded goods that Marshall was concerned with, but most of these variations have been left behind in modern uses of the term, which today almost always refer to a relative price of exports and imports. However, when authors have wanted to identify the terms of trade with a particular country and to represent it e...
#1Alan V. Deardorff (UM: University of Michigan)H-Index: 44
The Trans-Pacific Partnership (TPP) aspires to become a state-of-the-art trade agreement linking 12 countries on both sides of the Pacific. In addition to establishing a Free Trade Agreement (FTA) among these countries, negotiators are pursuing a long list of other issues, both trade-related and non-trade related. This paper examines the likely effects of the TPP on trade alone, taking into account the fact that all of the potential members of the TPP are already participants in other FTAs. Usin...
11 CitationsSource
By letting prices be determined entirely by the requirements of macroeconomic equilibrium, flexible-price models bypass the issues of how prices and wages are set in the short run and whether there is any direct linkage between domestic price and wage formation and the levels of prices and wages internationally. This paper deals with such direct linkages between international and domestic prices and wages. Aside from a few papers, there appears to have been little effort made to account for inte...
5 Citations