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Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models

Breinlich, Holger and Cuñat, Alejandro (2015) Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models The Economic Journal, 126 (595). pp. 1660-1702.

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Abstract

We examine the quantitative predictions of heterogeneous firm in the context of the Canada–US Free Trade Agreement (CUSFTA) of 1989. We compute predicted increases in trade flows and measured productivity and compare them to the post‐CUSFTA increases observed in the data. Most models predict increases in measured productivity that are too low by an order of magnitude relative to predicted increases in trade flows. A multi‐product firm extension that allows for within‐firm productivity increases has the potential to reconcile model predictions with the data.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > School of Economics
Authors :
NameEmailORCID
Breinlich, Holgerh.breinlich@surrey.ac.uk
Cuñat, Alejandro
Date : 10 November 2015
DOI : 10.1111/ecoj.12218
Depositing User : Clive Harris
Date Deposited : 24 May 2018 10:17
Last Modified : 20 Jun 2018 07:51
URI: http://epubs.surrey.ac.uk/id/eprint/846504

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