This paper disentangles the impacts of trade liberalization on firm market and production decisions. Using firm-product data for Ecuador, we exploit exogenous tariff changes at entry to World Trade Organization find positive effects revenue total factor productivity (TFP-R). Input-trade improves efficiency, measured by quantity (TFP-Q) leads firms raise their markups introduce new products foll...

Flat rates are a prominent pricing scheme for telecommunications services and are often preferred by consumers although average costs would be lower in an alternative usage-based tariff. Reasons are that flat rates protect against unexpectedly high costs (insurance effect), are more likely to be chosen if actual usage is overestimated (overestimation effect), and prevent any disutility that is ...

The central question addressed in this paper is whether the presence of the MFA made the NAFTA politically more acceptable. Assuming that the government maximizes a weighted sum of welfare and producer profits, we derive four key results. First, taking the initial level of trade restriction as exogenously given, it is possible for an FTA to be endorsed by both parties under the MFA-like quota i...

This paper tests for the production complementarity between firms’ access to high-quality intermediate inputs and their skill composition joint impact on output quality. Using census data at firm-product level Ecuador 1997–2007, we exploit exogenous tariff changes Ecuador’s entry World Trade Organization show that input cuts allow firms upgrade Next, demonstrate by means of within-firm instrume...

This paper examines how industrial policy – specifically tariff liberalization and tax subsidies – affects the magnitude and direction of FDI spillovers. We examine these spillover effects across the diverse ownership structure of China’s manufacturing sector for 1998 through 2007. We find that tariff reforms, particularly tariff reductions associated with China’s WTO ascension, increased the p...

Optimal tariffs and quotas are comgared for a large country under uncertainty. If the import supply schedule has constant elastjcity and is subject to multiplicative uncertainty and domestic demand is random then the optimal policy is a fixed +.d valorem tariff. If the supply schedule has constant elasticity but this elasticity is random then the optimal tariff is superior to the optimal quota....

the objective of this study is to provide a partial equilibrium analysis of the effects of tariff and exchange rate policy on the net exports with the particular emphasis on the selected economic sectors. the eight economic sectors in the model are agriculture; food, beverages and tobacco; textiles; wood; chemicals; construction; paper and miselaneous which contains metallic and non merallic pr...