This paper develops a numerical endogenous growth model approximating an infinite horizon which allows us to investigate the relationship between trade liberalization and economic growth. Although economic theory generally implies that trade liberalization will enhance economic growth, and these phenomena are positively correlated in empirical tests, the connection is not well substantiated in ...

This paper uses municipal-level data from South Africa for the period 1996–2011 to estimate medium long-run effects of trade liberalization on local labor markets. It finds that markets were more exposed tariff cuts tended experience slower growth in employment and income per capita than less regions. The longer-term regional earnings are stronger medium-term effects, tend be pronounced among m...

Abstract This paper estimates the effect on innovation of increased market access facilitated by trade liberalization. We use a novel empirical design that exploits tariff cuts during 1990s, along with detailed data among firms from 65 countries. Our results reveal large as measured patent data, suggesting multilateral liberalization has promoted and growth. These effects are not driven deterio...

We study the effects of countries’ import composition on multilateral liberalization using a global tariff database that covers 2000–2011 period. Employing theoretically motivated empirical approach and instrumental variable strategy, we provide evidence greater preferential trade agreement (PTA) shares induce cuts non-member countries. Our baseline estimates imply 10 percentage point increase ...

This paper reassesses the impact of trade liberalization on productivity. We build a new, unique database of effective tariff rates at the country-industry level for a broad range of countries over the past two decades. We then explore both the direct effect of liberalization in the sector considered, as well as its indirect impact in downstream industries via input linkages. Our findings point...

EAST Asian economic integration appears on the brink of becoming de jure, not de facto. From the 1980s, East Asia developed high levels of intraregional trade in response to market forces, not preferential trade agreements (PTAs). One reason was rising incomes in Japan and the newly industrialised economies (NIEs) of Hong Kong, Korea, Singapore and Taiwan, creating an incentive for these econom...

This paper determines the effect that offset payments under the Continued Dumping and Subsidy Offset Act (CDSOA also known as the “Byrd Amendment”) have on tariff levels that are lobbied for by U.S. producer groups. We derive the optimum antidumping tariff that would maximize the welfare of producers receiving CDSOA offset payments. We compare and contrast this newly derived “optimal antidumpin...

s: In this paper, our focus is to see the impact of imperfect international capital mobility on tariff adjustment process between two countries. Assuming complete specialization of each country, the results show that the existence of an imperfect international capital market may trigger a gradual tariff adjustment. That is, when it takes time and causes idle capital in reallocating capital betw...

This paper develops the theory of the optimal tariff under the Byrd Amendment when producers are also processors. The optimal tariff in this case is equal to the optimal processor tariff (when the processor is not also a producer) and is smaller than the optimal producer tariff (when the producer is not also a processor). In a vertical market structure, the welfare of a producer/processor (P/P)...