Results

Journal article

Journal of International Economics:

Are trade wars class wars? The importance of trade-induced horizontal inequality

What is the nature of the distributional effects of trade? This paper demonstrates conceptually and empirically the importance of ?trade-induced horizontal inequality,? i.e. inequality that occurs among workers with the ...Read more...

CEP discussion paper

Accounting for the evolution of China's production and trade patterns

This paper studies the evolution of China's production and trade patterns during its integration into the global economy. We document and explain new facts concerning changes in production and exports at the industry and...Read more...

CEP discussion paper

The social footprint of globalization: towards the introduction of strategic industries in quantitative trade models

We argue that our understanding of industrial policy in the presence of 'strategic' industries that exert positive externalities on the national economy may benefit from an extension of quantitative general equilibrium t...Read more...

CEP discussion paper

The distributional effects of trade: theory and evidence from the United States

How much do consumption patterns matter for the impact of international trade on inequality? In neoclassical trade models, the effects of trade shocks on consumers' purchasing power are governed by the shares of imports ...Read more...

CEP discussion paper

Are trade wars class wars? The importance of trade-induced horizontal inequality

What is the nature of the distributional effects of trade? This paper demonstrates conceptually and empirically the importance of "trade-induced horizontal inequality," i.e., inequality brought about by trade shocks that...Read more...

Chapter

The backlash of globalization

in Handbook of International Economics

We review the literature on the globalization backlash, seen as the political shift of voters and parties in a protectionist and isolationist direction, with substantive implications on governments' leaning and enacted p...Read more...

CEP discussion paper

Import liberalization as export destruction? Evidence from the United States

How does import protection affect export performance? In trade models with scale economies, import liberalization can reduce an industry's exports by cutting domestic production. We find this export destruction mechanism...Read more...

Journal article

Journal of International Economics:

Trade liberalization, input intermediaries and firm productivity: evidence from China

We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade liberalization. Intermediaries provide indirect access to foreign produced inputs. The productivity effe...Read more...

CEP discussion paper

Trade liberalization, input intermediaries and firm productivity: evidence from China

We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade liberalization. Intermediaries provide indirect access to foreign produced inputs. The productivity effe...Read more...

Journal article

American Economic Journal: Economic Policy:

From selling goods to selling services: firm responses to trade liberalization

In this paper, we focus on a new channel of adaptation to trade liberalization , namely the shift toward increased provision of services in lieu of goods production. We exploit variation in European Union trade policy to...Read more...

Journal article

The World Economy:

Service trade and occupational tasks: an empirical investigation

Using microdata for Belgium, we investigate the relationship between changes in the task content of production and the rise in the number of service exporters. We show that occupational tasks changes display an extremely...Read more...

Journal article

The Quarterly Journal of Economics:

Dynamic selection: an idea flows theory of entry, trade, and growth

This article develops an idea flows theory of trade and growth with heterogeneous firms. Entrants learn from incumbent firms, and the diffusion technology is such that learning depends not on the frontier technology, but...Read more...

CEP discussion paper

The effect of trade liberalization on firm-level profits: an event-study approach

I use an event study approach to present novel evidence on the impact of trade liberalization on firm-level profits. Using the uncertainty surrounding the negotiation and ratification process of the Canada-United States ...Read more...

CEP discussion paper

From selling goods to selling services: firm responses to trade liberalization

In the face of trade liberalization domestic firms are often forced out of the market, whereas others adapt and survive. In this paper we focus on a new channel of adaptation, namely the shift toward increased provision ...Read more...

CEP discussion paper

Free Trade Aggreements and the Consolidation of Democracy

We study the relationship between participation in free trade agreements (FTAs) and the sustainability of democracy. Our model shows that FTAs can critically reduce the incentive of authoritarian groups to seek power by ...Read more...

CEP discussion paper

Preferential Trade Agreements and the Labor Market

Labor market consequences are at the forefront of most debates on the merits of trade liberalization. Preferential trade agreements (PTAs) have become the primary form of trade liberalization in most countries, and sever...Read more...

CEP discussion paper

Is the WTO Article XXIV Bad?

This paper shows that the WTO's Article XXIV increases the likelihood of free trade, but may worsen world welfare when free trade is not reached and customs unions (CUs) form. We consider a model of many countries. Artic...Read more...

CEP discussion paper

Adjusting to Capital Account Liberalization

We study theoretically how the adjustment to liberalization of international financial transaction depends upon the degree of domestic financial development. Using a model with domestic and international borrowing constr...Read more...

SERC/Urban and Spatial Programme Discussion Paper

Bank Location and Financial Liberalization Reforms: Evidence from Microgeographic Data

We examine the effects of bank deregulation on the spatial dynamics of retail-bank branching, exploiting, much like a quasi-natural experiment, the context of intense liberalization reforms in Belgium in the late ninetie...Read more...

CEP discussion paper

Trade Liberalization and Heterogeneous Firm Models: An Evaluation Using the Canada - US Free Trade Agreement

We examine the qualitative and quantitative predictions of a heterogeneous firm model a la Melitz (2003) in the context of the Canada - US Free Trade Agreement (CUSFTA) of 1989. We calibrate our model to the pre-trade li...Read more...

CEP discussion paper

Sequential Exporting

Firms need to incur substantial sunk costs to break in foreign markets, yet many give up exporting shortly after their first experience, which typically involves very small sales. Conversely, other new exporters shoot up...Read more...

CEP discussion paper

Regional Trade Agreements

This paper reviews the theoretical and the empirical literature on regionalism. The formation of regional trade agreements has been, by far, the most popular form of reciprocal trade liberalization in the last fifteen ye...Read more...

CEP discussion paper

The ASEAN Free Trade Agreement: Impact on Trade Flows and External Trade Barriers

Using detailed data on trade and tariffs from 1992-2007, we examine how the ASEAN Free Trade Agreement has affected trade with non-members and external tariffs facing non-members. First, we examine the effect of preferen...Read more...

CEP discussion paper

Does Regionalism Affect Trade Liberalization Towards Non-Members?

We examine the effect of regionalism on unilateral trade liberalization using industry-level data on applied MFN tariffs and bilateral preferences for ten Latin American countries from 1990 to 2001. We find that preferen...Read more...

CEP discussion paper

Trade Liberalization, Outsourcing, and Firm Productivity

Empirical evidence suggests that trade liberalization increases firm productivity. This paper offers a novel explanation for this finding. I develop a simple general equilibrium model of trade in which trade liberalizati...Read more...

CEP discussion paper

The Effect of Trade Liberalization on Informality and Wages: Evidence from Mexico

This paper studies the impact of NAFTA on informality and real wages in Mexico. Using a dynamic industry model with firm heterogeneity, it is predicted that import tariff elimination could reduce the incidence of informa...Read more...

CEP discussion paper

Trade Liberalization and Industrial Restructuring through Mergers and Acquisitions

This paper analyzes mergers and acquisitions (M&A) as a previously neglected channel of industrial restructuring in the face of trade liberalization. Using the Canada-United States Free Trade Agreement of 1989 as a natur...Read more...