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trade with foreigners is detrimental for growth. We find that Taxes on international trade seems to drive this result …
Persistent link: https://www.econbiz.de/10014055545
We analyze a two country-two good model of international trade in which citizens in each country differ by their … specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a …
Persistent link: https://www.econbiz.de/10011398023
The authors study how the effect of trade openness on economic growth depends on complementary reforms that help a … gains after trade liberalization depend on the degree of labor market flexibility. In that model, trade protection may … ameliorate the problem of underemployment (and underproduction) in sectors affected by labor market distortions. Hence, trade …
Persistent link: https://www.econbiz.de/10014061434
The answer to the question in the title is yes for the case of ad-valorem taxes, a foreign industry that produces a vertically differentiated good of higher quality, and costs that take the form of qualitydependent fixed costs for both the foreign and domestic firm. The domestic industry loses...
Persistent link: https://www.econbiz.de/10010518148
general-equilibrium mapping from tariffs to household inequality measures. This also yields predictions for linkages between … tariffs, development level, and observed household inequality. Working with a new dataset, we then examine crosscountry … of trade. Regression results suggest that import protection makes income distribution worse for countries in labor …
Persistent link: https://www.econbiz.de/10011335217
adjustments in industry location patterns. The locations of production and innovation are determined based on trade barriers and … industrial share of the country where the policy is implemented. In addition, examining the welfare effects of tariffs, we find … that policy trade-offs may generate positive optimal tariff rates. …
Persistent link: https://www.econbiz.de/10015066879
We build and estimate a structural dynamic general equilibrium model of growth and trade. Trade affects growth through …, growth affects trade, directly through changes in country size and indirectly through altering the incidence of trade costs …. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …
Persistent link: https://www.econbiz.de/10011298529
This paper revisits the relationship between international trade and economic growth. We measure trade openness indices … in explaining growth gains from trade. Using sectoral level data from WORLD KLEMS Database on industrial productivity and … output and global input output tables to construct the measures of trade openness, our empirical analysis covering 21 …
Persistent link: https://www.econbiz.de/10012120367
This paper develops a dynamic theory that accounts for the evolution of trade policy, underlying internal class … effects of international trade, it finds a prominent interaction between trade policy and the pattern of economic development …, and also a significant role for trade liberalization in economic take-off. Consistent with historical evidence for Western …
Persistent link: https://www.econbiz.de/10003397477
This paper develops a dynamic theory that accounts for the evolution of trade policy, underlying internal class … conflicts, and output growth performance. By analyzing political responses to the distributional effects of international trade … flow of protectionism. This nonmonotonic evolution of trade policy is consistent with historical evidence for Western …
Persistent link: https://www.econbiz.de/10014053727