CEP/LSE International Economics Seminars
What Goes Around Comes Around: Export-Enhancing Effects of Import-Tariff Reductions
Nori Tarui (Hawai'i at Manoa), joint with Kazunobu Hayakawa and Jota Ishikawa
Wednesday 10 May 2017 14:30 - 16:00
SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH
About this event
In international trade, transportation involves a round trip where the transport firm commits to capacity sufficient to serve shipping in both directions. Trade theory indicates that, with market power, firms in the transport sector adjust their freight rates strategically when trading countries change their tariff rates; and hence reducing import tariffs by a country may increase not only its import but also its export. Using tariff, freight rates, and trade data across approximately 150 countries in 2003-2007, we find evidence that supports these predictions. This finding indicates an extra impact of import tariff reduction on exports through a channel that is unforeseen in the literature.
Participants are expected to adhere to the CEP Events Code of Conduct.
Directions
This event will take place in SAL 2.04, 2nd Floor Conference Room, Sir Arthur Lewis Building, LSE, 32 Lincoln's Inn Fields, London WC2A 3PH.
The building is labelled SAL on the LSE campus map. You can also find us on Google Maps. For further information, go to contact us.International Economics Seminars are part of the CEP's Trade programme.