Determinants of Trade Policy Responses to the 2008 Financial Crisis

Gawande, Kishore; Hoekman, Bernard; Cui, Yue

dc.creator	Gawande, Kishore
dc.creator	Hoekman, Bernard
dc.creator	Cui, Yue
dc.date	2012-03-19T18:05:50Z
dc.date	2012-03-19T18:05:50Z
dc.date	2011-10-01
dc.date.accessioned	2023-02-17T21:00:39Z
dc.date.available	2023-02-17T21:00:39Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111031093440
dc.identifier	http://hdl.handle.net/10986/3628
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244592
dc.description	The collapse in trade and contraction of output that occurred during 2008-09 was comparable to, and in many countries more severe than, the Great Depression of 1930, but did not give rise to the rampant protectionism that followed the Great Crash. Theory suggests several hypotheses for why it was not in the interest of many firms to lobby for protection, including much greater macroeconomic "policy space" today, the rise of intra-industry trade (specialization in specific varieties), and the fragmentation of production across global value chains ("vertical" specialization and the associated growth of trade in intermediates). Institutions may also have played a role in limiting the extent of protectionist responses. World Trade Organization disciplines raise the cost of using trade policies for member countries and have proved to be a stable foundation for the open multilateral trading system that has been built over the last fifty years. This paper empirically examines the power of these and other theories to explain the observed pattern of trade policy responses to the 2008 crisis, using trade and protection data for seven large emerging market countries that have a history of active use of trade policy. Vertical specialization (global fragmentation) is found to be the most powerful economic factor determining trade policy responses.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5862
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	AGRICULTURAL PRODUCTS
dc.subject	AGRICULTURE
dc.subject	ANTI-DUMPING INVESTIGATIONS
dc.subject	ANTIDUMPING
dc.subject	ANTIDUMPING DUTIES
dc.subject	APPLIED TARIFF
dc.subject	AVERAGE TARIFF
dc.subject	BARRIERS TO TRADE
dc.subject	BILATERAL IMPORTS
dc.subject	BILATERAL TARIFF
dc.subject	BILATERAL TARIFFS
dc.subject	BILATERAL TRADE
dc.subject	BILATERAL TRADE DATA
dc.subject	COMMERCIAL POLICY
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPETITIVE POSITION
dc.subject	COMPETITIVENESS
dc.subject	CONSTANT RETURNS TO SCALE
dc.subject	CONSUMERS
dc.subject	COUNTRY OF ORIGIN
dc.subject	CURRENCY
dc.subject	CURRENCY APPRECIATION
dc.subject	CURRENT ACCOUNT
dc.subject	CUSTOMS
dc.subject	CUSTOMS UNIONS
dc.subject	DEBT
dc.subject	DEMAND ELASTICITIES
dc.subject	DEMAND ELASTICITY
dc.subject	DEMOCRATIC SOCIETIES
dc.subject	DEVALUATION
dc.subject	DEVELOPED COUNTRIES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT POLICY
dc.subject	DISPUTE SETTLEMENT
dc.subject	DOMESTIC CONSUMERS
dc.subject	DOMESTIC INDUSTRIES
dc.subject	DOMESTIC MARKET
dc.subject	DOMESTIC PRODUCERS
dc.subject	DOMESTIC PRODUCTION
dc.subject	DOMESTIC SUPPLIERS
dc.subject	ECONOMETRIC MODELS
dc.subject	ECONOMIC OBJECTIVES
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIC RESEARCH
dc.subject	ECONOMIC THEORY
dc.subject	ELASTICITY OF TRADE
dc.subject	EMERGING MARKET
dc.subject	EXCHANGE RATES
dc.subject	EXPORT COSTS
dc.subject	EXPORT CREDIT
dc.subject	EXPORT CREDIT INSURANCE
dc.subject	EXPORT MARKETS
dc.subject	EXPORT SUPPLY
dc.subject	EXPORTERS
dc.subject	EXPORTS
dc.subject	EXTERNALITY
dc.subject	FINAL GOODS
dc.subject	FINANCIAL CRISIS
dc.subject	FIXED COSTS
dc.subject	FOREIGN COUNTRIES
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN FIRM
dc.subject	FOREIGN FIRMS
dc.subject	FOREIGN MARKET
dc.subject	FOREIGN PRODUCERS
dc.subject	FOREIGN PRODUCTS
dc.subject	FREE TRADE
dc.subject	FREE TRADE AGREEMENT
dc.subject	FREE-TRADE AGREEMENTS
dc.subject	FUTURE RESEARCH
dc.subject	GDP
dc.subject	GLOBAL TRADE
dc.subject	GLOBAL TRADING
dc.subject	GLOBALIZATION
dc.subject	GROSS EXPORTS
dc.subject	GROSS OUTPUT
dc.subject	HIGH TARIFFS
dc.subject	HOME COUNTRY
dc.subject	HOME GOVERNMENT
dc.subject	HOME GOVERNMENTS
dc.subject	HOME TARIFFS
dc.subject	HUMAN CAPITAL
dc.subject	IMPERFECT COMPETITION
dc.subject	IMPORT PENETRATION
dc.subject	IMPORT PROTECTION
dc.subject	IMPORT QUOTAS
dc.subject	INCREASING RETURNS
dc.subject	INDUSTRIAL POLICY
dc.subject	INDUSTRIAL PRODUCTION
dc.subject	INDUSTRY TRADE
dc.subject	INPUT-OUTPUT TABLES
dc.subject	INTERMEDIATE GOODS
dc.subject	INTERMEDIATE INPUTS
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL RULES
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTOR CONFIDENCE
dc.subject	LEVEL OF PROTECTION
dc.subject	LIBERALIZATION OF TRADE
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CONSTRAINTS
dc.subject	LOBBYING
dc.subject	LOW INTEREST RATES
dc.subject	MACROECONOMIC POLICIES
dc.subject	MARKET ACCESS
dc.subject	MEMBER COUNTRIES
dc.subject	MEMBER GOVERNMENTS
dc.subject	MERCANTILISM
dc.subject	MONETARY POLICIES
dc.subject	MONETARY POLICY
dc.subject	MONOPOLISTIC COMPETITION
dc.subject	MONOPOLY
dc.subject	MULTILATERAL LIBERALIZATION
dc.subject	MULTILATERAL NEGOTIATION
dc.subject	MULTILATERAL TRADE
dc.subject	MULTINATIONAL CORPORATIONS
dc.subject	MULTINATIONAL FIRMS
dc.subject	NATIONAL BUREAU
dc.subject	NATIONAL TREATMENT
dc.subject	OPEN MARKETS
dc.subject	OPEN TRADE
dc.subject	OPTIMAL TARIFF
dc.subject	OPTIMAL TARIFFS
dc.subject	PATTERN OF TRADE
dc.subject	PERFECT COMPETITION
dc.subject	POLICY RESPONSES
dc.subject	POLITICAL ECONOMY
dc.subject	PREFERENTIAL RATE
dc.subject	PREFERENTIAL RATES
dc.subject	PREFERENTIAL TARIFF
dc.subject	PREFERENTIAL TARIFFS
dc.subject	PREFERENTIAL TRADE
dc.subject	PREFERENTIAL TRADE AGREEMENT
dc.subject	PREFERENTIAL TRADE AGREEMENTS
dc.subject	PRICE COMPETITION
dc.subject	PRICE OF IMPORTS
dc.subject	PRODUCTION INCREASES
dc.subject	PROTECTION DATA
dc.subject	PROTECTION FOR SALE
dc.subject	PROTECTIONISM
dc.subject	PROTECTIONIST
dc.subject	PROTECTIONIST PRESSURES
dc.subject	REAL EXCHANGE RATE
dc.subject	RECIPROCITY
dc.subject	REGIONAL TRADE
dc.subject	REGIONAL TRADE AGREEMENTS
dc.subject	REGULATORY POLICIES
dc.subject	RISK PREMIUM
dc.subject	RULES OF NEGOTIATION
dc.subject	SAFEGUARD ACTIONS
dc.subject	SAFEGUARD MEASURES
dc.subject	SPECIALIZATION
dc.subject	SPECIFIC COMMITMENTS
dc.subject	TARIFF BINDINGS
dc.subject	TARIFF COMMITMENTS
dc.subject	TARIFF DATA
dc.subject	TARIFF EQUIVALENT
dc.subject	TARIFF INCREASE
dc.subject	TARIFF INCREASES
dc.subject	TARIFF LEVELS
dc.subject	TARIFF LINES
dc.subject	TARIFF ON IMPORTS
dc.subject	TARIFF POLICIES
dc.subject	TARIFF POLICY
dc.subject	TARIFF PREFERENCES
dc.subject	TARIFF PROTECTION
dc.subject	TARIFF RATE
dc.subject	TARIFF RATES
dc.subject	TARIFF REVENUE
dc.subject	TARIFF STRUCTURE
dc.subject	TERMS OF TRADE
dc.subject	TRADE AGREEMENTS
dc.subject	TRADE ALERT
dc.subject	TRADE BARRIERS
dc.subject	TRADE CONCESSIONS
dc.subject	TRADE COOPERATION
dc.subject	TRADE COSTS
dc.subject	TRADE DISTORTIONS
dc.subject	TRADE EFFECTS
dc.subject	TRADE EXTERNALITIES
dc.subject	TRADE FLOWS
dc.subject	TRADE MODELS
dc.subject	TRADE POLICIES
dc.subject	TRADE POLICY
dc.subject	TRADE POLICY INSTRUMENTS
dc.subject	TRADE POLICY REVIEW
dc.subject	TRADE POLICY REVIEW MECHANISM
dc.subject	TRADE REFORMS
dc.subject	TRADE RELATIONSHIPS
dc.subject	TRADE RESTRICTIONS
dc.subject	TRADE ROUNDS
dc.subject	TRADE VOLUMES
dc.subject	TRADE WARS
dc.subject	TRADING PARTNERS
dc.subject	TRANSPORT COSTS
dc.subject	UNEMPLOYMENT
dc.subject	UNEMPLOYMENT RATES
dc.subject	UNILATERAL LIBERALIZATION
dc.subject	URUGUAY ROUND
dc.subject	VALUE ADDED
dc.subject	VALUE OF TRADE
dc.subject	VERTICAL SPECIALIZATION
dc.subject	WELFARE GAINS
dc.subject	WORLD TRADE
dc.subject	WORLD TRADE ORGANIZATION
dc.subject	WORLD TRADING SYSTEM
dc.subject	WTO
dc.subject	ZERO TARIFFS
dc.subject	ZERO TARIFFS
dc.title	Determinants of Trade Policy Responses to the 2008 Financial Crisis
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region