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Market Disruption, Export Market Disruption, Compensation, and GATT Reform

Bhagwati, Jagdish N.

This paper analyzes the problem of market disruption as it currently afflicts the exporting countries, chiefly LDCs. Based on the analysis of optimal policy intervention under endogenous uncertainty, developed by Bhagwati and Srinivasan (Journal of International Economics, November 1976), it develops a complete set of rules by which the developed and less developed countries may abide, under a revised GATT code, when faced by the problem of increased competitiveness of LDC exports to DC markets. These rules include the compensation of LDCs by DCs, in varying degrees, for both potential and actual exercise of import restrictions by DCs.

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Published In
World Development
Publisher DOI
https://doi.org/10.1016/0305-750X(76)90015-2
Volume
4
Issue
12
Pages
989 - 1020
Academic Units
Economics
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