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Institutional Causes of International Trade Friction

CAI Hongbo
(Business School, Beijing Normal University, Beijing 100875, China)

Abstract: In the era of economic globalization, trade friction has increased significantly along with the continuous develop鄄
ment of international trade. Based on the definition and classification of trade friction, this paper analyzes the causes of trade fric鄄
tion. The causes of trade friction are complicated. From the aspect of national institution, the narrowing of government size goes
against with reducing trade friction though it increases the economic freedom. The more restriction to trade a nation has on the ex鄄
ternal market, the more serious the trade friction will be. But a nation蒺s domestic regulation on credit, labor, and production mar鄄
ket benefits the reduction of trade friction. Better performance in rule of law can guarantee less trade friction. Nowadays, interna鄄
tional trade friction is inevitable. In order to achieve the sustained prosperity of international trade in the era of economic global鄄
ization, we can start from the institutional quality. Specifically, it is necessary to implement government regulation, release inter鄄
national trade constraints, and strengthen government management restriction and rule of law, so that we can create the environ鄄
ment of international trade which is balanced internally and externally.
Key Words: trade friction; national institution; government size; trade restriction; level of Rule of Law

(本文责编摇 邓摇 艳)

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