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Trade and the political economy of standards

Published online by Cambridge University Press:  06 July 2012

JOHAN SWINNEN  and
THIJS VANDEMOORTELE
JOHAN SWINNEN*
Affiliation:
LICOS Centre for Institutions and Economic Performance & Department of Economics, University of Leuven (KU Leuven)
THIJS VANDEMOORTELE*
Affiliation:
LICOS Centre for Institutions and Economic Performance & Department of Economics, University of Leuven (KU Leuven)
*
*Email: thijs.vandemoortele@econ.kuleuven.be
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Abstract

This paper reviews the emerging literature on the political economy of public standards in an open economy to explain why standards are set at certain levels, and how this affects trade. We use a simple framework to illustrate how interest groups may influence the standard-setting process, and which factors may affect the political equilibria. We analyze the relation between trade and standards, and their potential protectionist nature. We argue that standards may act as barriers or catalysts to trade, that both under- or over-standardization may occur, and that standards may serve as protectionist instruments, or not.

Type
Review Article
Information
World Trade Review , Volume 11 , Issue 3: Symposium Issue: Standards and Non-Tariff Barriers in Trade , July 2012 , pp. 390 - 400
Copyright
Copyright © Johan Swinnen and Thijs Vandemoortele 2012

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