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

Breinlich, Holger and Cunat, Alejandro (2015) Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models. Economic Journal . ISSN 0013-0133 (In Press)

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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
Additional Information: This is the peer reviewed version of the following article: Breinlich, H. Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models, Economic Journal, 2015, which has been published in final form at http://dx.doi.org/10.1111/ecoj.12218. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Schools/Departments: University of Nottingham UK Campus > Faculty of Social Sciences > School of Economics
Identification Number: https://doi.org/10.1111/ecoj.12218
Depositing User: Breinlich, Holger
Date Deposited: 24 Sep 2015 12:10
Last Modified: 23 Sep 2016 08:42
URI: http://eprints.nottingham.ac.uk/id/eprint/30235

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