Protectionism Pays Off: Larger Countries Gain More from Trade Deals
The study looked at trade agreements since 1980 to see if countries give and receive equal trade benefits. They found that in agreements between similar countries, both sides tend to get similar benefits. But in agreements between rich and poor countries, the rich countries often get more benefits. This can lead to a situation where countries keep some trade barriers to get better deals in agreements. However, it's better for developing countries to open up their markets without expecting much in return. Overall, the study shows that countries can get better trade deals if they have higher trade barriers, but this can also make them less trustworthy in keeping their promises in the long run.