Research

The Consistency of Partial Equilibrium Estimates of Trade Creation and Diversion

Predicting the trade effects of tariff reductions has received considerable attention in recent years with the advent of many preferential trade arrangements and the Tokyo Round negotiations. A widely cited article by Baldwin, Murray [1977] and a subsequent UNCTAD study by Ginmanal. ountries (LDCs) as a result of tariff cuts in more developed countries under the generalized system of preferences (GSPs) and under the most-favorednation (MFN) system. In a Brookings Institution study, Cline predicted the effects of various Tokyo Round concessions, taking into account the reduction in European Economic Community (EEC) trade diversion as a result of decreases in the common external tariff.

et[1980] compare probable expansion of exports from less developedet al. [1978]

Publication Information
Article Title: The Consistency of Partial Equilibrium Estimates of Trade Creation and Diversion
Journal: Weltwirtschaftliches Archiv (Mar, 1987)
Author(s): MacPhee, Craig R
Researcher Information
    
MacPhee, Craig R
MacPhee, Craig R
Emeritus
Expertise:
  • Emerging Markets and Transition Economies
  • Import Tariffs and Tax Policies
  • International Trade & Finance
Economics
CBA 353
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-2319
Fax: (402) 472-9700
cmacphee1@unl.edu