Arbeitspapier

The Impact of Trade Liberalization on Industrial Productivity

This paper calls into question the currently most influential model of international trade. An empirical finding by Trefler (2004, AER) and others that industrial productivity increases more strongly in liberalized industries than in non-liberalized industries has been widely accepted as evidence for the Melitz (2003, Econometrica) model. We show that a multi-industry version of the Melitz model does not predict this relationship. Instead, it predicts the opposite relationship that industrial productivity increases more strongly in non-liberalized industries than in liberalized industries.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 4365

Classification
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Trade Policy; International Trade Organizations
Subject
trade liberalization
firm heterogeneity
industrial productivity

Event
Geistige Schöpfung
(who)
Segerstrom, Paul S.
Sugita, Yoichi
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2013

Handle
Last update
10.03.2025, 11:46 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Segerstrom, Paul S.
  • Sugita, Yoichi
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2013

Other Objects (12)