Publication Type
Journal Article
Version
acceptedVersion
Publication Date
11-2023
Abstract
I develop a general equilibrium framework to analyze the welfare consequences of product regulations and their international harmonization. In my model, raising product standards reduces a negative consumption externality, but also increases the marginal and fixed costs of production. When product standards are set noncooperatively, the effects of standards on other countries' wages and number of firms are not internalized, giving rise to an international inefficiency. The World Trade Organization's nondiscrimination principle of national treatment only partly addresses this inefficiency. Welfare losses from abandoning national treatment average 2.8%, whereas the maximum welfare gains from efficient cooperation average 11.8%.
Keywords
National treatment, trade, tariff, agreements, gravity, impact, wars
Discipline
Industrial Organization | International Economics
Research Areas
International Economics
Publication
International Economic Review
First Page
1
Last Page
34
ISSN
0020-6598
Identifier
10.1111/iere.12676
Publisher
Wiley
Citation
MEI, Yuan.
Regulatory protection and the role of International Cooperation. (2023). International Economic Review. 1-34.
Available at: https://ink.library.smu.edu.sg/soe_research/2707
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/iere.12676