Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2001-03-30
Number: 01-033/2
Author-Name: Wilfred J. Ethier
Author-Email: ethier@econ.sas.upenn.edu
Author-Workplace-Name: University of Pennsylvania
Title: Unilateralism in a Multilateral World
Abstract: This paper addresses the interplay between unilateralism and multilateralism. I first describe theirrespective stylized facts. I next present a simple, multi-country model with high initial tariffbarriers and with the features that have always been of paramount concern to policymakers, allowgovernments to negotiate multilateral agreements, and analyze the resulting equilibrium. I thenconsider the possibility of unilateralism and find a role for a system with features remarkablysimilar to contemporary unilateralism. The relationships between multilateralism and unilateralismare subtle: Unilateralism has the properties it has because the world is multilateral (the insurancetriangle); to be useful unilateralism requires a multilateral component of some type; this typeresults from a basic compatibility problem between those who negotiate multilaterally and thosewho establish unilateralism.
Classification-JEL: F13
Keywords: Unilateralism; multilateralism; administered protection; insurance triangle; multilateral component; compatibility problem
File-Url: https://papers.tinbergen.nl/01033.pdf
File-Format: application/pdf
File-Size: 3233498 bytes
Handle: RePEc:tin:wpaper:20010033