Anti-trade Bias in Trade Policy and General Equilibrium
Nuno Limão and Arvind Panagariya
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1
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3
)
The B.E. Journal of Economic Analysis & Policy
1538-1645
September
2004
Abstract
An important question that has continued to elude trade economists is why trade interventions are biased in favor of import-competing rather than exportable sectors. Indeed, as Philip Levy (1999) points out, under a set of neutrality assumptions, the dominant political-economy model, Grossman and Helpman (1994), predicts a pro-trade bias.