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Accounting for the new gains from trade liberalization


Hsieh, Chang-Tai; Li, Nicholas; Ossa, Ralph; Yang, Mu-Jeung (2017). Accounting for the new gains from trade liberalization. Working paper series / Department of Economics 249, University of Zurich.

Abstract

We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade literature. To this end, we first develop an exact decomposition of the gains from trade which separates "traditional" and "new" gains. We then apply this decomposition using Canadian and US micro data and and that the "new" welfare effects of CUSFTA on Canada were negative.

Abstract

We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade literature. To this end, we first develop an exact decomposition of the gains from trade which separates "traditional" and "new" gains. We then apply this decomposition using Canadian and US micro data and and that the "new" welfare effects of CUSFTA on Canada were negative.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:F10, F12, F14
Uncontrolled Keywords:Gains from trade, trade liberalization, CUSFTA
Language:English
Date:March 2017
Deposited On:11 Apr 2017 13:24
Last Modified:30 Aug 2017 01:27
Series Name:Working paper series / Department of Economics
Number of Pages:49
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp249.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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