Table of Contents
Economics Research International
Volume 2014, Article ID 505042, 4 pages
Research Article

Trade Negotiation Capacity and Health Carve-Outs in Trade Agreements

Department of Economics, California State University, Chico, CA 95929, USA

Received 28 April 2014; Accepted 16 July 2014; Published 23 July 2014

Academic Editor: David E. Giles

Copyright © 2014 Sheikh Shahnawaz. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


There is a dearth of scholarship on the relationship between international trade and health status in countries. This paper contributes to filling this gap by proposing a formal analytical framework to study the link between the extent of health issues carved out from trade agreements by negotiating countries and their expenditure on public health. We also examine the role played by the nature of the political and fiscal regime prevalent in the country in the securing of the carve-outs. The model predicts that a higher level of carve-outs is more likely for countries that have relatively low levels of public health spending and which tend to be more politically free and fiscally liberal. We provide anecdotal evidence that supports our findings.