Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models

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 increas...

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Main Authors: Breinlich, Holger, Cunat, Alejandro
Format: Article
Published: Wiley 2015
Online Access:https://eprints.nottingham.ac.uk/30235/
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author Breinlich, Holger
Cunat, Alejandro
author_facet Breinlich, Holger
Cunat, Alejandro
author_sort Breinlich, Holger
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-302352020-05-04T17:13:08Z https://eprints.nottingham.ac.uk/30235/ Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models Breinlich, Holger Cunat, Alejandro 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. Wiley 2015-07-14 Article PeerReviewed Breinlich, Holger and Cunat, Alejandro (2015) Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models. Economic Journal . ISSN 0013-0133 (In Press) http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12218/abstract doi:10.1111/ecoj.12218 doi:10.1111/ecoj.12218
spellingShingle Breinlich, Holger
Cunat, Alejandro
Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
title Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
title_full Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
title_fullStr Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
title_full_unstemmed Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
title_short Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
title_sort tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models
url https://eprints.nottingham.ac.uk/30235/
https://eprints.nottingham.ac.uk/30235/
https://eprints.nottingham.ac.uk/30235/