Free Trade and Exploitation

Learning and innovation: Exploitation and exploration trade-offs☆

a r t i c l e i n f o This paper examines the relationship between learning and innovation outcomes, focusing on the trade-off between exploitation and exploration in learning and innovation. The study identifies two types of learning and two outcomes of innovation. Exploitation and exploration in learning are inversely associated with innovation rates and impact. While exploitative, localized ...

Beyond Trade Creation: Free Trade Agreements and Trade Disputes

This paper investigates the effects of the formation of free trade agreements (FTAs) on trade disputes. We construct a unique and comprehensive dataset on inter-country trade disputes from 1995 to 2007. The dataset covers 110 countries and 1130 trade disputes. We find that the incidences of trade disputes between two countries are positively associated with economic size, economic growth, and t...

Free Trade and the Environment

what should environmentalists say about free trade? Many environmentalists object to free trade by appealing the " Race to the Bottom Argument. " This argument is inconclusive, but there are reasons to worry about unrestricted free trade's environmental effects nonetheless; the rules of trade embodied in institutions such as the World Trade Organization may be unjustifiable. Programs to compens...

WTO, Free Trade, and Oligopolies

Farsighted free trade networks

The paper examines the strategic stability and the e¢ ciency of free trade networks. We reconsider the endogenous tari¤ model introduced by Goyal and Joshi (2006). Di¤erent from their analysis with myopic countries, we adopt a new solution concept, pairwise farsighted stable set (Herings, Mauleon and Vannetelbosch, 2009, GEB), to examine the formation of free trade agreements (FTAs) as a networ...