TY - JOUR
T1 - The impact of trade liberalization on industrial productivity
AU - Segerstrom, Paul S.
AU - Sugita, Yoichi
N1 - Publisher Copyright:
© 2015 by the European Economic Association.
PY - 2015/12/1
Y1 - 2015/12/1
N2 - An empirical finding by Trefler (2004, "The Long and Short of the Canada-U.S. Free Trade Agreement", American Economic Review, 94(4), 870-895) and others that industrial productivity increases more strongly in liberalized industries than in nonliberalized industries has been widely accepted as evidence for the Melitz ("The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity", Econometrica, 71, 1695-1725) model. We show that under fairly standard assumptions a multi-industry version of the Melitz model does not predict this relationship. Instead, it predicts the opposite relationship that industrial productivity increases more strongly in nonliberalized industries than in liberalized industries.
AB - An empirical finding by Trefler (2004, "The Long and Short of the Canada-U.S. Free Trade Agreement", American Economic Review, 94(4), 870-895) and others that industrial productivity increases more strongly in liberalized industries than in nonliberalized industries has been widely accepted as evidence for the Melitz ("The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity", Econometrica, 71, 1695-1725) model. We show that under fairly standard assumptions a multi-industry version of the Melitz model does not predict this relationship. Instead, it predicts the opposite relationship that industrial productivity increases more strongly in nonliberalized industries than in liberalized industries.
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U2 - 10.1111/jeea.12140
DO - 10.1111/jeea.12140
M3 - Article
AN - SCOPUS:84958742971
SN - 1542-4774
VL - 13
SP - 1167
EP - 1179
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 6
ER -