Trade Barriers as Bargaining Outcomes

21 Pages Posted: 8 May 2006

See all articles by Kishore Gawande

Kishore Gawande

University of Texas at Austin

Hui Li

Eastern Illinois University


Whether bilateral trade barrier data conform with the Grossman-Helpman (1995) model's predictions about 'trade talks' is examined in this article. A simple form of the prediction from the model is tested. Bilateral US-Japan and US-EU data from the 1990s are employed. The results are the first in the literature.

Suggested Citation

Gawande, Kishore and Li, Hui, Trade Barriers as Bargaining Outcomes. World Economy, Vol. 29, pp. 437-457, April 2006, Available at SSRN: or

Kishore Gawande (Contact Author)

University of Texas at Austin ( email )

2317 Speedway
Austin, TX 78712
United States

Hui Li

Eastern Illinois University ( email )

Charleston, IL 61920-3099
United States

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