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The Dynamics of Trade Integration and the Political Value of Commitment

The paper analyzes the importance of credible institutions in the process of trade liberalization. It combines aspects of credible policy announcements with adjustment costs. We show that if industries' profits are subject to adjustment costs, a dynamic link between periods arises that creates... Full description

1st Person: Hefeker, Carsten
Additional Persons: Gros, Daniel verfasserin
Source: in Oxford economic papers Vol. 52, No. 2 (2000), p. 398-414
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Type of Publication: Article
Language: English
Published: 2000
Keywords: research-article
Online: Volltext
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