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The objective of this manuscript is to serve as a practical guide for evaluation of the general equilibrium (GE) effects of trade policy using the structural gravity model. We try to achieve this objective in four steps. First, we focus on the original Armington-CES gravity model, as a...
Persistent link: https://www.econbiz.de/10012984506
The objective of this manuscript is to serve as a practical guide for estimations with the structural gravity model. After a brief review of the theoretical foundations, we summarize the main challenges with gravity estimations and we review the solutions to address those challenges. Then, we...
Persistent link: https://www.econbiz.de/10013315492
Are retaliatiory tariffs politically targeted and, if so, are they effective? Do countries designing a retaliation response face a trade-off between maximizing political targeting and mitigating domestic economic harm? We use the recent trade escalation between the US, China, the European Union...
Persistent link: https://www.econbiz.de/10011986148
Ever since the early 20th century, Argentina has failed to fully reap the benefits that integrating into the world economy can offer. With exports and imports only accounting for less than 30% of GDP, Argentina is significantly less integrated into the world economy than other emerging market...
Persistent link: https://www.econbiz.de/10012111118
This paper examines the effect of a change in U.S. trade policy on the domestic investment of U.S. manufacturers. Using a difference-in-differences identification strategy, we find that industries more exposed to reductions in import tariff uncertainty exhibit relative declines in investment...
Persistent link: https://www.econbiz.de/10011803703
The United States introduced Federal Trade Adjustment Assistance (TAA) as part of the 1962 Trade Expansion Act to dampen the adverse impact of increased trade on workers. Applications to receive TAA require approval from the Department of Labor. Guided by the technical criteria used by the U.S....
Persistent link: https://www.econbiz.de/10012998814
Persistent link: https://www.econbiz.de/10012916378
The recent backlash against free trade is partially motivated by the decline in manufacturing employment due to rising … economies from rising Chinese imports. In this paper, I estimate the causal effect of trade protection on imports and employment … growth rate of employment in protected industries by 0.07 percentage points. These results show that protectionist …
Persistent link: https://www.econbiz.de/10014098595
scale effects on firms. These include reduced sales, employment, labor costs, and material costs, without positive impacts …
Persistent link: https://www.econbiz.de/10014454819
increase in their share of employment within the overall workforce. …
Persistent link: https://www.econbiz.de/10014420407