The Oxford Handbook of T H E P O L I T I C A L E C O N O M Y O F I N T E R NAT I O NA L T R A D E The Oxford Handbook of THE POLITICAL ECONOMY OF INTERNATIONAL TRADE Edited by LISA L. MARTIN 1 3 Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Oxford is a registered trademark of Oxford University Press in the UK and certain other countries. Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016 © Oxford University Press 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization. Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above. You must not circulate this work in any other form and you must impose this same condition on any acquirer. Library of Congress Cataloging-in-Publication Data The Oxford handbook of the political economy of international trade / edited by Lisa L. Martin. pages cm Includes bibliographical references. ISBN 978–0–19–998175–5 (hardback : alk. paper) 1. International trade. 2. Commercial policy. I. Martin, Lisa L., 1961– HF1379.O9965 2015 382—dc23 2014039333 1 3 5 7 8 9 6 4 2 Printed in the United States of America on acid-free paper Contents About the Contributors ix 1. Introduction 1 Lisa L. Martin PART I HISTORICAL,THEORETICAL, AND METHODOLOGICAL DEVELOPMENTS 2. Explaining the GATT/WTO: Origins and Effects 19 Joanne Gowa 3. The Free Trade Idea 37 Gordon Bannerman 4. Trade Policy Instruments over Time 57 Chad P. Bown 5. Methodological Issues 77 Raymond Hicks PART II DOMESTIC SOCIETY 6. Individual Attitudes 99 Jason Kuo and Megumi Naoi 7. Labor and Protectionist Sentiment 119 Erica Owen 8. Domestic Politics and International Disputes 138 B. Peter Rosendorff vi Contents PART III INDUSTRY-LEVEL PROTECTION 9. Industry-Level Protection 159 Lucy M. Goodhart 10. Intra-Industry Trade and Policy Outcomes 177 Timothy M. Peterson and Cameron G. Thies 11. Heterogeneous Firms and Policy Preferences 196 Michael Plouffe 12. The Politics of Market Competition: Trade and Antitrust in a Global Economy 213 Tim Büthe 13. Connected Channels: MNCs and Production Networks in Global Trade 233 Walter Hatch, Jennifer Bair, and Günter Heiduk PART IV DOMESTIC INSTITUTIONS 14. New Democracies 259 Bumba Mukherjee 15. Electoral Systems and Trade 280 Stephanie J. Rickard 16. Authoritarian Regimes 298 Daniel Yuichi Kono 17. Domestic Geography and Policy Pressures 316 Kerry A. Chase PART V INTERNATIONAL NEGOTIATIONS AND INSTITUTIONS 18. The Design of Trade Agreements 337 Leslie Johns and Lauren Peritz 19. Deep Integration and Regional Trade Agreements 360 Soo Yeon Kim Contents vii 20. WTO Membership 380 Christina L. Davis and Meredith Wilf 21. Dispute Settlement in the WTO 400 Marc L. Busch and Krzysztof J. Pelc PART VI ISSUE LINKAGES 22. Trade and War 419 Erik Gartzke and Jiakun Jack Zhang 23. Trade and Environment 439 J. Samuel Barkin 24. Bridging the Silos: Trade and Exchange Rates in International Political Economy 457 Mark S. Copelovitch and Jon C. W. Pevehouse 25. Trade and Development 475 Mark S. Manger and Kenneth C. Shadlen 26. A Match Made in Heaven? The Wedding of Trade and Human Rights 493 Susan Ariel Aaronson 27. Trade and Migration 518 Margaret E. Peters Index 535 About the Contributors Susan Ariel Aaronson is a research professor in the Elliott School of International Affairs at George Washington University. Jennifer Bair is an associate professor of sociology at the University of Colorado, Boulder. J. Samuel Barkin is a professor in the Department of Conflict Resolution, Human Security, and Global Governance at the McCormack Graduate School of Policy and Global Studies at the University of Massachusetts Boston. Gordon Bannerman is a tutor at International Correspondence Schools. Chad P. Bown is lead economist at the World Bank in Washington, DC, and a research fellow at CEPR in London. Marc L. Busch is Karl F. Landegger Professor of International Business Diplomacy at the School of Foreign Service, Georgetown University. Tim Büthe is an associate professor of political science and public policy, as well as a senior fellow for the Rethinking Regulation Project at the Kenan Institute for Ethics at Duke University. Kerry A. Chase is an associate professor of politics at Brandeis University. Mark S. Copelovitch is an associate professor of political science and public affairs and Trice Faculty Scholar at the University of Wisconsin-Madison. Christina L. Davis is a professor of politics and international affairs at Princeton University. Erik Gartzke is a professor of political science at the University of California, San Diego. Lucy M. Goodhart is a lecturer at Brandeis University. Joanne Gowa is William D. Boswell Professor of World Politics of Peace and War at Princeton University. Walter Hatch is an associate professor of government and the director of the Oak Institute for Human Rights at Colby College. Günter Heiduk is a professor in the East Asian Center at the Warsaw School of Economics.