Page 13 |
Save page Remove page | Previous | 13 of 229 | Next |
|
small (250x250 max)
medium (500x500 max)
Large (1000x1000 max)
Extra Large
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
|
4
raw materials, intermediate goods, or finished goods. Similarly, an endogenous
effect can be identified as service sectors like transportation, insurance, and finance
that support trade deem further liberalization beneficial to enhance their profit
opportunities. Although consumers benefit from lower prices associated with
reduction of trade barriers, the benefits are more concentrated among commercial
interests who have a greater financial incentive to incur the cost of lobbying for
additional liberalization. For any single individual, the cost of lobbying for
additional liberalization likely exceeds the expected benefits. No individual
consumer has the incentive to lobby for more liberalization but rather can be
expected to free-ride at the expense of others (Olson 1965). Indeed, evidence is
mounting to suggest that even the minimal practical cost of voting for a pro-trade
candidate may exceed the expected intrinsic or self-expressive benefit of voting for a
protectionist candidate (Caplan 2007).
The supply and demand model holds constant all variables other than price
to simplify the analysis of changes in quantity of a good. Demand and supply are
relations between price and quantity. Changes in price correspond to different
quantities demanded and supplied at that price. Elementary economics texts reflect
change in price as movement along the demand and the supply curves. The market
clears only when the quantity demanded at a given price equals the quantity supplied
at that price. Given a price decline, consumers are willing and able to purchase more
units however; producers are less willing and able to produce additional units. The
outcome in this example of a price decline, ceteris paribus, is a shortage resulting
Object Description
| Title | Riding the wave: an interdisciplinary approach to understanding the popularity of RTA notifications to the GATT/WTO |
| Author | McClough, David Andrew |
| Author email | mcclough@usc.edu; dmcclou@bgsu.edu |
| Degree | Doctor of Philosophy |
| Document type | Dissertation |
| Degree program | Political Economy & Public Policy |
| School | College of Letters, Arts and Sciences |
| Date defended/completed | 2008-08-07 |
| Date submitted | 2008 |
| Restricted until | Unrestricted |
| Date published | 2008-10-18 |
| Advisor (committee chair) | Katada, Saori N. |
| Advisor (committee member) |
Nugent, Jeffrey B. Cartier, Carolyn |
| Abstract | The proliferation of Regional Trade Agreements (RTAs) notified to the GATT/WTO since the early 1980s deviates from the long-term trend and reflects participation of nearly every member of the United Nations. This dissertation seeks to explain the current wave of RTA notifications by supplementing the economic model of supply and demand with diffusion theory. Application of the supply and demand model is useful in distinguishing between changes in demand and changes insupply of RTAs. This distinction is seldom emphasized in the current literature examining RTAs. Recent applications of diffusion theory in the discipline of international relations offer a unique opportunity to include a dynamic force in the static analysis of the supply and demand model. Empirical analysis assesses the fit of the RTA diffusion pattern by comparing the RTA diffusion pattern to a cumulative standard normal distribution. The analysis indicates that the diffusion pattern of RTAs resembles the diffusion of an innovation through a social system.; The implication of this finding is that the adoption of an RTA as trade policy is not made independently of the decision by other states. Indeed, the analysis suggests interdependency between states. Further empirical analysis explores economic and political variables that may explain the decision to adopt the RTA as trade policy. The empirical analysis is unique in that survival analysis is utilized to assess the variation in duration to adopt an initial RTA since the early 1980s. A central discovery is that regional designation explains the variation in duration to adopt an initial RTA. Multiple regression analysis confirms the results generated using survival analysis and support the assertion that the proliferation of RTAs likely reflects changes in both the demand for RTAs and the supply of RTAs. This dissertation concludes by considering implications for the WTO resulting from the increase in RTA notifications. |
| Keyword | trade agreements |
| Coverage date | after 1980 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m1675 |
| Contributing entity | University of Southern California |
| Rights | McClough, David Andrew |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | cisadmin@lib.usc.edu |
| Filename | etd-McClough-2338 |
| Archival file | uscthesesreloadpub_Volume32/etd-McClough-2338.pdf |
Description
| Title | Page 13 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 4 raw materials, intermediate goods, or finished goods. Similarly, an endogenous effect can be identified as service sectors like transportation, insurance, and finance that support trade deem further liberalization beneficial to enhance their profit opportunities. Although consumers benefit from lower prices associated with reduction of trade barriers, the benefits are more concentrated among commercial interests who have a greater financial incentive to incur the cost of lobbying for additional liberalization. For any single individual, the cost of lobbying for additional liberalization likely exceeds the expected benefits. No individual consumer has the incentive to lobby for more liberalization but rather can be expected to free-ride at the expense of others (Olson 1965). Indeed, evidence is mounting to suggest that even the minimal practical cost of voting for a pro-trade candidate may exceed the expected intrinsic or self-expressive benefit of voting for a protectionist candidate (Caplan 2007). The supply and demand model holds constant all variables other than price to simplify the analysis of changes in quantity of a good. Demand and supply are relations between price and quantity. Changes in price correspond to different quantities demanded and supplied at that price. Elementary economics texts reflect change in price as movement along the demand and the supply curves. The market clears only when the quantity demanded at a given price equals the quantity supplied at that price. Given a price decline, consumers are willing and able to purchase more units however; producers are less willing and able to produce additional units. The outcome in this example of a price decline, ceteris paribus, is a shortage resulting |
