Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models
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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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Official URL: https://doi.org/10.1111/ecoj.12218
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 | |||||||||
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| Divisions : | Faculty of Arts and Social Sciences > School of Economics | |||||||||
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| 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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