Infectious disease outbreak and trade policy formulation

Abstract

This paper provides a framework to understand why a country might resort to a policy like an import ban when at risk from infectious disease outbreak overseas. Superior import-competing domestic production technologies, and over-reliance on taxing the public for government revenue, could lead to blocked trade. The results of the two-country political economy model lend support to the wide use of public health interventions to minimize infections, and highlight their role in promoting open trade policies.Trade openness, infectious disease outbreak