Replication data for: Regional Effects of Trade Reform: What Is the Correct Measure of Liberalization?

Principal Investigator(s): View help for Principal Investigator(s) Brian K. Kovak

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Project Citation:

Kovak, Brian K. Replication data for: Regional Effects of Trade Reform: What Is the Correct Measure of Liberalization? Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112663V1

Project Description

Summary: A growing body of research examines the regional effects of trade liberalization using a weighted average of trade policy changes across industries. This paper develops a specific-factors model of regional economies that provides a theoretical foundation for this intuitively appealing empirical approach and also provides guidance on treatment of the nontraded sector. In the context of Brazil's early 1990s trade liberalization, I find that regions facing a 10 percentage point larger liberalization-induced price decline experienced a 4 percentage point larger wage decline. The results also confirm the empirical relevance of appropriately dealing with the nontraded sector.

Scope of Project

JEL Classification:
      F13 Trade Policy; International Trade Organizations
      F16 Trade and Labor Market Interactions
      O19 International Linkages to Development; Role of International Organizations
      O24 Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy

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V1 [2019-10-11]

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