Kilumelume, Michael; Morando, Bruno; Newman, Carol; … - 2021
inputs. Trade protection can provide space for domestic firms to increase prices and mark-ups, allowing low-productivity … misallocation, leading to aggregate productivity losses of 5-10 per cent. In particular, tariffs are strongly related to distortions … that are correlated with firm productivity. The main channel through which tariffs distort the allocation of capital is …