This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 103 No. 5 (August 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

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

Article Citation

Kovak, Brian K. 2013. "Regional Effects of Trade Reform: What Is the Correct Measure of Liberalization?" American Economic Review, 103(5): 1960-76.

DOI: 10.1257/aer.103.5.1960

Abstract

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.

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (458.20 MB) | Online Appendix (850.51 KB)

Authors

Kovak, Brian K. (Carnegie Mellon U)

JEL Classifications

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


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us