National Interests and Trade Restrictions: The Case of Kosovo and Serbia

Bardhyl Salihu and Predrag Rajsic

Many theorists before and after David Ricardo have analyzed the issue of cross-border exchange of goods and services. Most of them, with more or less success, have argued that any restrictions on trade are harmful for both parties. However, as Peter Boettke pointed out,[1] in today’s world of stylized market models, the proponents of economic interventionism have more space to come up with additional ad-hoc reasons why there may be “real-world” benefits from government interventions that are not included in these models. One of the often invoked “benefits” of domestic protectionism are the so-called national interests. Even though these interests are rarely explicitly defined or explained, many people tend to take these arguments at face value and support such policies.[2]

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