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Research Topics

Trade and domestic regulatory policies are increasingly intertwined for two converging reasons.

On the one hand, the gains from freer trade can rarely be fully achieved without appropriate domestic regulatory reforms. Such reforms must be based on a thorough evaluation of existing regulatory objectives and institutions, calling for the design of new regulatory structures and instruments to help make domestic markets work better and to help governments pursue better defined social objectives.

On the other hand, the benefits from domestic regulatory reforms cannot be fully garnered without pressures from international competition. The traditional source of such pressures are innovative and dynamic foreign firms. Another, increasingly important, source are governments competing to design the best possible regulations, as best illustrated by the U.S. States in the U.S., the Indian States in India, the Chinese Regions in China, and the European Union (EU) Member States in the EU.

 

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