Data and Code for: Import Liberalization as Export Destruction? Evidence from the United States
Principal Investigator(s): View help for Principal Investigator(s) Holger Breinlich, University of Surrey; Elsa Leromain, University of Antwerp; Dennis Novy, University of Warwick; Thomas Sampson, London School of Economics
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| replication package | 08/28/2025 05:57:AM |
Project Citation:
Project Description
Abstract: In trade models with scale economies import liberalization reduces exports within industries by shrinking real market potential. We find this export destruction mechanism reduced US export growth following the permanent normalization of trade relations with China (PNTR). There was also an offsetting boost to exports from lower input costs. We use our estimates to calibrate a quantitative model and show that scale economies are economically important for trade policy analysis. Although PNTR increased aggregate US exports relative to GDP, exports declined in the most exposed industries. US gains from PNTR are positive, but 30 percent smaller than under constant returns.
Scope of Project
F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
F13 Trade Policy; International Trade Organizations
F15 Economic Integration
Methodology
- NBER-CES Manufacturing Industry Database, National Bureau of Economic Research (1958-2018).
- Bureau of Economic Analysis, Input-Output Accounts (1997).
- CEPII Gravity Database, CEPII, Paris.
- Feenstra, R., Romalis, J., Schott, P., 2002. US imports, exports, and tariff data (1989-2001).
- BACI: International Trade Database at the Product-Level, CEPII, Paris (1994-2007).
- World Input-Output Database, University of Groningen, Netherlands.
- United Nations, UN Comtrade Database (1997).
Related Publications
Published Versions
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