Publication:
Determinants of Trade Policy Responses to the 2008 Financial Crisis

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dc.contributor.authorGawande, Kishore
dc.contributor.authorHoekman, Bernard
dc.contributor.authorCui, Yue
dc.date.accessioned2012-03-19T18:05:50Z
dc.date.available2012-03-19T18:05:50Z
dc.date.issued2011-10-01
dc.description.abstractThe collapse in trade and contraction of output that occurred during 2008-09 was comparable to, and in many countries more severe than, the Great Depression of 1930, but did not give rise to the rampant protectionism that followed the Great Crash. Theory suggests several hypotheses for why it was not in the interest of many firms to lobby for protection, including much greater macroeconomic "policy space" today, the rise of intra-industry trade (specialization in specific varieties), and the fragmentation of production across global value chains ("vertical" specialization and the associated growth of trade in intermediates). Institutions may also have played a role in limiting the extent of protectionist responses. World Trade Organization disciplines raise the cost of using trade policies for member countries and have proved to be a stable foundation for the open multilateral trading system that has been built over the last fifty years. This paper empirically examines the power of these and other theories to explain the observed pattern of trade policy responses to the 2008 crisis, using trade and protection data for seven large emerging market countries that have a history of active use of trade policy. Vertical specialization (global fragmentation) is found to be the most powerful economic factor determining trade policy responses.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111031093440
dc.identifier.doi10.1596/1813-9450-5862
dc.identifier.urihttps://hdl.handle.net/10986/3628
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5862
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectAGRICULTURE
dc.subjectANTI-DUMPING INVESTIGATIONS
dc.subjectANTIDUMPING
dc.subjectANTIDUMPING DUTIES
dc.subjectAPPLIED TARIFF
dc.subjectAVERAGE TARIFF
dc.subjectBARRIERS TO TRADE
dc.subjectBILATERAL IMPORTS
dc.subjectBILATERAL TARIFF
dc.subjectBILATERAL TARIFFS
dc.subjectBILATERAL TRADE
dc.subjectBILATERAL TRADE DATA
dc.subjectCOMMERCIAL POLICY
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITIVE POSITION
dc.subjectCOMPETITIVENESS
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCONSUMERS
dc.subjectCOUNTRY OF ORIGIN
dc.subjectCURRENCY
dc.subjectCURRENCY APPRECIATION
dc.subjectCURRENT ACCOUNT
dc.subjectCUSTOMS
dc.subjectCUSTOMS UNIONS
dc.subjectDEBT
dc.subjectDEMAND ELASTICITIES
dc.subjectDEMAND ELASTICITY
dc.subjectDEMOCRATIC SOCIETIES
dc.subjectDEVALUATION
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT POLICY
dc.subjectDISPUTE SETTLEMENT
dc.subjectDOMESTIC CONSUMERS
dc.subjectDOMESTIC INDUSTRIES
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC PRODUCERS
dc.subjectDOMESTIC PRODUCTION
dc.subjectDOMESTIC SUPPLIERS
dc.subjectECONOMETRIC MODELS
dc.subjectECONOMIC OBJECTIVES
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC THEORY
dc.subjectELASTICITY OF TRADE
dc.subjectEMERGING MARKET
dc.subjectEXCHANGE RATES
dc.subjectEXPORT COSTS
dc.subjectEXPORT CREDIT
dc.subjectEXPORT CREDIT INSURANCE
dc.subjectEXPORT MARKETS
dc.subjectEXPORT SUPPLY
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNALITY
dc.subjectFINAL GOODS
dc.subjectFINANCIAL CRISIS
dc.subjectFIXED COSTS
dc.subjectFOREIGN COUNTRIES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN FIRM
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN MARKET
dc.subjectFOREIGN PRODUCERS
dc.subjectFOREIGN PRODUCTS
dc.subjectFREE TRADE
dc.subjectFREE TRADE AGREEMENT
dc.subjectFREE-TRADE AGREEMENTS
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectGLOBAL TRADE
dc.subjectGLOBAL TRADING
dc.subjectGLOBALIZATION
dc.subjectGROSS EXPORTS
dc.subjectGROSS OUTPUT
dc.subjectHIGH TARIFFS
dc.subjectHOME COUNTRY
dc.subjectHOME GOVERNMENT
dc.subjectHOME GOVERNMENTS
dc.subjectHOME TARIFFS
dc.subjectHUMAN CAPITAL
dc.subjectIMPERFECT COMPETITION
dc.subjectIMPORT PENETRATION
dc.subjectIMPORT PROTECTION
dc.subjectIMPORT QUOTAS
dc.subjectINCREASING RETURNS
dc.subjectINDUSTRIAL POLICY
dc.subjectINDUSTRIAL PRODUCTION
dc.subjectINDUSTRY TRADE
dc.subjectINPUT-OUTPUT TABLES
dc.subjectINTERMEDIATE GOODS
dc.subjectINTERMEDIATE INPUTS
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL RULES
dc.subjectINTERNATIONAL TRADE
dc.subjectINVESTOR CONFIDENCE
dc.subjectLEVEL OF PROTECTION
dc.subjectLIBERALIZATION OF TRADE
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLOBBYING
dc.subjectLOW INTEREST RATES
dc.subjectMACROECONOMIC POLICIES
dc.subjectMARKET ACCESS
dc.subjectMEMBER COUNTRIES
dc.subjectMEMBER GOVERNMENTS
dc.subjectMERCANTILISM
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectMONOPOLY
dc.subjectMULTILATERAL LIBERALIZATION
dc.subjectMULTILATERAL NEGOTIATION
dc.subjectMULTILATERAL TRADE
dc.subjectMULTINATIONAL CORPORATIONS
dc.subjectMULTINATIONAL FIRMS
dc.subjectNATIONAL BUREAU
dc.subjectNATIONAL TREATMENT
dc.subjectOPEN MARKETS
dc.subjectOPEN TRADE
dc.subjectOPTIMAL TARIFF
dc.subjectOPTIMAL TARIFFS
dc.subjectPATTERN OF TRADE
dc.subjectPERFECT COMPETITION
dc.subjectPOLICY RESPONSES
dc.subjectPOLITICAL ECONOMY
dc.subjectPREFERENTIAL RATE
dc.subjectPREFERENTIAL RATES
dc.subjectPREFERENTIAL TARIFF
dc.subjectPREFERENTIAL TARIFFS
dc.subjectPREFERENTIAL TRADE
dc.subjectPREFERENTIAL TRADE AGREEMENT
dc.subjectPREFERENTIAL TRADE AGREEMENTS
dc.subjectPRICE COMPETITION
dc.subjectPRICE OF IMPORTS
dc.subjectPRODUCTION INCREASES
dc.subjectPROTECTION DATA
dc.subjectPROTECTION FOR SALE
dc.subjectPROTECTIONISM
dc.subjectPROTECTIONIST
dc.subjectPROTECTIONIST PRESSURES
dc.subjectREAL EXCHANGE RATE
dc.subjectRECIPROCITY
dc.subjectREGIONAL TRADE
dc.subjectREGIONAL TRADE AGREEMENTS
dc.subjectREGULATORY POLICIES
dc.subjectRISK PREMIUM
dc.subjectRULES OF NEGOTIATION
dc.subjectSAFEGUARD ACTIONS
dc.subjectSAFEGUARD MEASURES
dc.subjectSPECIALIZATION
dc.subjectSPECIFIC COMMITMENTS
dc.subjectTARIFF BINDINGS
dc.subjectTARIFF COMMITMENTS
dc.subjectTARIFF DATA
dc.subjectTARIFF EQUIVALENT
dc.subjectTARIFF INCREASE
dc.subjectTARIFF INCREASES
dc.subjectTARIFF LEVELS
dc.subjectTARIFF LINES
dc.subjectTARIFF ON IMPORTS
dc.subjectTARIFF POLICIES
dc.subjectTARIFF POLICY
dc.subjectTARIFF PREFERENCES
dc.subjectTARIFF PROTECTION
dc.subjectTARIFF RATE
dc.subjectTARIFF RATES
dc.subjectTARIFF REVENUE
dc.subjectTARIFF STRUCTURE
dc.subjectTERMS OF TRADE
dc.subjectTRADE AGREEMENTS
dc.subjectTRADE ALERT
dc.subjectTRADE BARRIERS
dc.subjectTRADE CONCESSIONS
dc.subjectTRADE COOPERATION
dc.subjectTRADE COSTS
dc.subjectTRADE DISTORTIONS
dc.subjectTRADE EFFECTS
dc.subjectTRADE EXTERNALITIES
dc.subjectTRADE FLOWS
dc.subjectTRADE MODELS
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE POLICY INSTRUMENTS
dc.subjectTRADE POLICY REVIEW
dc.subjectTRADE POLICY REVIEW MECHANISM
dc.subjectTRADE REFORMS
dc.subjectTRADE RELATIONSHIPS
dc.subjectTRADE RESTRICTIONS
dc.subjectTRADE ROUNDS
dc.subjectTRADE VOLUMES
dc.subjectTRADE WARS
dc.subjectTRADING PARTNERS
dc.subjectTRANSPORT COSTS
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATES
dc.subjectUNILATERAL LIBERALIZATION
dc.subjectURUGUAY ROUND
dc.subjectVALUE ADDED
dc.subjectVALUE OF TRADE
dc.subjectVERTICAL SPECIALIZATION
dc.subjectWELFARE GAINS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWORLD TRADING SYSTEM
dc.subjectWTO
dc.subjectZERO TARIFFS
dc.subjectZERO ­ TARIFFS
dc.titleDeterminants of Trade Policy Responses to the 2008 Financial Crisisen
dspace.entity.typePublication
okr.crossref.titleDeterminants of Trade Policy Responses to the 2008 Financial Crisis
okr.date.disclosure2011-10-01
okr.date.doiregistration2025-04-10T11:08:30.033551Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111031093440
okr.guid516261468325225262
okr.identifier.doi10.1596/1813-9450-5862
okr.identifier.externaldocumentum000158349_20111031093440
okr.identifier.internaldocumentum15407168
okr.identifier.reportWPS5862
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/10/31/000158349_20111031093440/Rendered/PDF/WPS5862.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication49a06ad1-63d4-5c3a-8b66-c6c3009e9cdf
relation.isAuthorOfPublication.latestForDiscovery49a06ad1-63d4-5c3a-8b66-c6c3009e9cdf
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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