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Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models

Cuñat, Alejandro; Breinlich, Holger; Cunat, Alejandro

Authors

Alejandro Cuñat

Holger Breinlich holger.breinlich@nottingham.ac.uk

Alejandro Cunat alejandro.cunat@univie.ac.at



Abstract

We examine the quantitative predictions of heterogeneous firm in the context of the Canada–US Free Trade Agreement (CUSFTA) of 1989. We compute predicted increases in trade flows and measured productivity and compare them to the post-CUSFTA increases observed in the data. Most models predict increases in measured productivity that are too low by an order of magnitude relative to predicted increases in trade flows. A multi-product firm extension that allows for within-firm productivity increases has the potential to reconcile model predictions with the data.

Journal Article Type Article
Publication Date 2016-09
Journal The Economic Journal
Print ISSN 0013-0133
Electronic ISSN 0013-0133
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 126
Issue 595
Pages 1660-1702
APA6 Citation Cuñat, A., Breinlich, H., & Cunat, A. (2016). Tariffs, Trade and Productivity: A Quantitative Evaluation of Heterogeneous Firm Models. Economic Journal, 126(595), 1660-1702. https://doi.org/10.1111/ecoj.12218
DOI https://doi.org/10.1111/ecoj.12218
Publisher URL http://onlinelibrary.wiley.com/doi/10.1111/ecoj.12218/abstract
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf
Additional Information This is the peer reviewed version of the following article: Breinlich, H. Tariffs, trade and productivity: a quantitative evaluation of heterogeneous firm models, Economic Journal, 2015, which has been published in final form at http://dx.doi.org/10.1111/ecoj.12218. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





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