Trade Agreements and the Nature of Price Determination
检验了贸易条件理论的核心结论，发现国际价格决定方式（市场出清还是讨价还价）会影响贸易协定的深度需求，对政策制定者理解贸易谈判有参考价值。
According to the terms-of-trade theory, negotiations over tariffs alone, coupled with an effective market access preservation rule, can bring governments to the efficiency frontier. In this paper, we show that the nature of international price determination is important for this central result of the terms-of-trade theory. While the received theory assumes that international prices are fully disciplined by aggregate market clearing conditions, we show here that support for “shallow” integration is overturned, and instead a need for “deep” integration is suggested ? wherein direct negotiations occur over both border and behind-the-border policies ? if international prices are determined through bargaining.