10.17889/E109501V1
Bagwell, Kyle
Staiger, Robert W.
Replication data for: What Do Trade Negotiators Negotiate About? Empirical Evidence from the World Trade Organization
ICPSR Inter-university Consortium for Political and Social Research
2010
10.1257/aer.101.4.1238
10.1257/aer.101.4.1238
1
According to the terms-of-trade theory, governments use trade
agreements to escape from a terms-of-trade-driven prisoner's
dilemma. We use the terms-of-trade theory to develop a relationship
that predicts negotiated tariff levels on the basis of pre-negotiation
data: tariffs, import volumes and prices, and trade elasticities. We
then confront this predicted relationship with data on the outcomes
of tariff negotiations associated with the accession of new members
to the World Trade Organization. We find strong and robust support
for the central predictions of the terms-of-trade theory in the
observed pattern of negotiated tariff cuts. (JEL F11, F13)