Race-to-the-bottom unilateralism

Brown Bag Lunch

Wednesday 29 April 2009

12h15 - R3

Pierre-Louis Vézina

“Race-to-the-bottom unilateralism”

Abstract: This paper provides an empirical assessment of a tariff race-to-the-bottom. Using spatial econometrics methods, I show that political economy forces, by which more FDI generated employment stirs a competition for low tariffs, explain part of the unilateral trade liberalization that took place in Factory Asia during the last 20 years.