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The purpose of this paper is to assess the impact of India’s trade liberalization during the late 1990s and 2000s on productivity of manufacturing firms and verify whether the productivity-enhancing impact of reductions in input tariffs was greater than that of output tariff cuts, as found in some earlier studies.

Firm-level (company-level) data drawn from Prowess database are used for the estimation of total factor productivity (TFP) at the firm level, done by using the Levinsohn–Petrin methodology. Econometric models are estimated to explain firm-level TFP. The explanatory variables used are output and input tariff rates and quantitative restrictions on imports at the industry level and firm characteristics such as firm size, export intensity and import intensity. Firm-level panel data for 2002-2010 or for a longer period 1998-2010 are used for the estimation of econometric models. Model estimation is done by applying the fixed-effects model and IV-2SLS, 3SLS estimators and EC2SLS estimators.

Trade liberalization had a significant positive effect on the productivity of Indian manufacturing firms. The lowering of output tariff had a greater beneficial impact on TFP of Indian manufacturing firms than the lowering of tariff on intermediate inputs.

Good deal of care has been taken in the measurement of output and inputs for the purpose of TFP measurement. Two alternative frameworks, gross output and value added, are used. This helps in making a better estimate of the impact of trade liberalization on TFP.

Purpose − This study explains a puzzle: most countries realize the mutual benefit of tariff cutting, but tariffs never become zero.

Approach − The method is decision-theoretic, and proves the results by example.

Findings − The Johnson tariff-ridden equilibrium may be unique, but not the free-trade equilibrium, and tariff cutting may cause a ‘decision problem under uncertainty’ (d.p.u.u.) of Luce, R.D., Raiffa, H. (1989), in which mutual tariff-cutting benefits both parties only up to some point.

Originality/value − This approach addresses a pragmatic problem with global analysis and suggests institutional rearrangement to avoid such conundrum.

The purpose of this paper is to investigate the potential economic effects of the proposed Bangladesh-India free trade agreement (FTA).

The authors have used the computable general equilibrium (CGE) analysis of Global Trade Analysis Project (GTAP) database. The analysis highlights the possible costs and benefits of the two nations within three different scenarios. Under Scenario I all bilateral import tariffs between Bangladesh and India are removed; Scenario II represents the setting where Bangladesh cuts its all tariffs by 75 and in Scenario III Bangladesh cuts tariffs by 50 percent. India cuts all their tariffs by 100 percent in all three scenarios.

The findings indicate that India may gain more in terms of welfare and real GDP via the improved terms of trade while Bangladesh is going to have welfare loss, but if Bangladesh is able to make a preferential FTA like Scenario III with India its welfare, real GDP and exports will be increased substantially.

This paper is the first-ever attempt to estimate the effect of the proposed Bangladesh-India FTA using CGE analysis of GTAP database version 7.

The literature examining the participation of developing countries in the General Agreement on Tariffs and Trade (GATT) and International Trade Organisation (ITO) negotiations generally sees their attitudes towards these projects as having been driven exclusively by a commitment to import substitution. This commitment, it is argued, led developing countries to oppose many aspects of the GATT/ITO project, particularly the requirement for reciprocal tariff cuts. The purpose of this paper is to focus on examining the critical period around the ultimately doomed negotiation of the Charter for an ITO and the process of creating the GATT.

This paper draws from GATT documents and from the literature on economic history to give a more comprehensive account of the motivating ideas underpinning developing countries attitudes to the post‐war negotiations.

This paper argues that this view misconstrues and caricatures the ideas and motivations underpinning developing countries' attitudes towards the GATT and ITO. Though import substitution and the related objective of industrialisation each played a part in shaping developing countries' attitudes, they are only aspects of a more complex set of aims and ideas. Developing countries were drawing from a range of key experiences and ideas beyond simply import substitution in forming their attitude towards the GATT/ITO project, in particular the volatility in commodity markets that preceded the negotiations, the legacy of colonialism and the lessons provided by the ninetieth and twentieth centuries on trade policy. Finally, this paper argues that the first round of GATT negotiations shows that developing countries were substantially less opposed to reciprocal tariff concessions than has previously been argued.

These findings are important for anyone who wants to understand the evolution of the GATT and the role developing countries played in it, and the difficulties between the rich and poor nations that continue to characterise negotiations in the World Trade Organisation.

Imports of cut roses increased after Norway implemented a preferential tariff scheme for the least developed countries in 2002. When the scheme was extended to more countries in 2008 – among them Kenya – imports exploded. This article studies the subsequent changes in supply channels, import costs and the way Norwegian firms imported.

Qualitative data, obtained through interviews among five rose importers, are combined with quantitative data for all importing firms and transactions in Norway for the years 2003–2014. These data are analysed in light of recent economic theories on international trade.

When Kenya was included in the scheme, imports from Europe and domestic production in Norway decreased substantially. Imports from some African countries with low income levels also declined. Importing under GSP involves high fixed import costs due to stringent procedures. Each firm's imports increased gradually, and over time learning may have facilitated importing. Direct trade with African producers and control over the logistics chain seem to have become more important.

The analysis builds mainly on data for Norwegian importers, not for African exporters.

Simplifying the GSP procedures could increase Norwegian imports from developing countries and induce establishment of new trade relationships, perhaps also for other products than roses.

Using a mixture of original qualitative data as well as unique, detailed and comprehensive quantitative data, the article provides new insights into how preferential tariff reductions for developing countries’ exports to a developed country affect trade and buyer–supplier relationships.

The purpose of this paper is to assess the degree of tariff escalation in Taiwan's agriculture-related commodities and the economy-wide impact of tariff harmonization.

A computable general equilibrium model of the Taiwan economy is applied to simulate for the economy-wide impact of three alternative proposals that reduce tariff rates as well as the degree of tariff escalation in agriculture-related products.

The paper shows that reduction in tariff wedge helps increase social welfare of Taiwan at the expense of some agricultural sectors. Based on the pair-wise comparisons of the three tariff reduction proposals, the scenario where the upstream products have the least reduction would have agricultural sectors fare better than in the other scenarios where more negative impact on output and employment would occur to agricultural sectors.

The paper assesses quantitatively the economy-wide impact of reducing tariff wedges between unprocessed and processed products, which is rarely seen in the literature using a detailed computable general equilibrium model.

Provides marketers with both a broad‐based and an industry‐specific understanding of the marketing implications of GATT. First presents background information regarding GATT, followed by an overview of the key provisions of the agreement. Provides an analysis of a number of consumer product industries to help assess the potential industry‐specific impact of GATT on the “offensive” and “defensive” marketing strategies which are described in the study.

Posits that trade in agriculture constitutes the main element of the ongoing multilateral trade negotiations, with the World Trade Organisation, which has a conclusion date of 1 January 2005. Acknowledges that liberalization of trade in this sector was the prime reason why developing countries joined the WTO. Reckons that developed countries resist mounting pressure of decisive moves towards agricultural improvement, during the trade negotiations, by trying to protect their own agricultural sectors from foreign competition.