Ma, Alyson C.; Van Assche, Ari - Economics and Research Department, Asian Development Bank - 2014
assembly location abroad. We show that tariff shirking increases the elasticity of bilateral trade to economy-specific tariff … hikes due to an extra extensive margin effect. Furthermore, we show that tariff shirking affects the vulnerability of … headquarter services and manufacturing to trade policy shocks in opposite ways. While tariff shirking dampens the vulnerability of …