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Foreign-owned manufacturing firms' shares of U.S. trade grew from almost nothing in the 1960s to 7 or 8 per cent of trade in manufactured goods by the 1980s. It has changed little in the past decade, except for fluctuations related to changing U.S. exchange rates. Foreign-owned firms are less...
Persistent link: https://www.econbiz.de/10013226179
This paper studies two episodes where an exporting industry saw its sales plummet after importing countries banned their products to protect their citizens' health. The first case is the poisoned grapes crisis involving Chile and the United States in 1989. The second is the mad cows dispute...
Persistent link: https://www.econbiz.de/10013220395
The new protectionism threatening the international trading regime is related to significant structural changes in … much to establish after World War II. While it is possible that particular protectionism will continue to spread and lead …
Persistent link: https://www.econbiz.de/10013221976
How large are optimal tariffs? What tariffs would prevail in a worldwide trade war? How costly would be a breakdown of international trade policy cooperation? And what is the scope for future multilateral trade negotiations? I address these and other questions using a unified framework which...
Persistent link: https://www.econbiz.de/10013121039
Understanding the formation of individual trade policy preferences is a fundamental input into the modeling of trade policy outcomes. Surprisingly, past studies have found mixed evidence that various labor market and industry attributes of workers affect their trade policy preferences, even...
Persistent link: https://www.econbiz.de/10013075425
We study the consequences of protectionism for macroeconomic fluctuations. First, using high-frequency trade policy … VARs show that protectionism acts as a supply shock, causing output to fall and inflation to rise in the short run …. Moreover, protectionism has at best a small positive effect on the trade balance. Second, we build a small open economy model …
Persistent link: https://www.econbiz.de/10012926407
This paper explores the relationship between exchange rate adjustment and trade policy in a simple New Keynesian open economy macro model. We show that movement in exchange rates have a direct implication for trade policy when governments choose tariffs endogenously. In particular, we show that...
Persistent link: https://www.econbiz.de/10012893578
This paper proposes a new test of the Protection for Sale (PFS) model by Grossman and Helpman (1994). Unlike existing methods in the literature, our approach does not require any data on political organizations. We formally show that the PFS model predicts that the quantile regression of the...
Persistent link: https://www.econbiz.de/10012759437
In the evolving debate and analysis of global imbalances, a commonly overlooked issue pertains to rising protectionism …
Persistent link: https://www.econbiz.de/10012760524
This paper revisits the issue of people's preferences for international trade protection examining survey data from the American National Election Studies. I first show that both an individual's skills and the international trade characteristics of their employment industry affects their trade...
Persistent link: https://www.econbiz.de/10012765363