Inequality and Endogenous Trade Policy Outcomes

  • Nuno Limão, Arvind Panagariya
  • Published 2006
An enduring puzzle in international economics is why trade interventions are biased in favor of importcompeting rather than export sectors and therefore restrict trade. In this paper, we show that if the government's objective reflects a concern for inequality then trade policy generally exhibits an anti-trade bias. Importantly, under neutral assumptions… CONTINUE READING