From Selling Goods to Selling Services: Firm Responses to Trade Liberalization

Breinlich, Holger; Soderbery, Anson; Wright, Greg C.

Abstract

© 2018, American Economic Association. In this paper, we focus on a new channel of adaptation to trade liberalization, namely the shift toward increased provision of services in lieu of goods production. We exploit variation in European Union trade policy to show that lower manufacturing tariffs lead firms to shift into services provision and out of goods production. We also find that a successful transition is associated with higher firm-level R & D stocks.

Citation

Breinlich, H., Soderbery, A., & Wright, G. C. (2018). From Selling Goods to Selling Services: Firm Responses to Trade Liberalization. American Economic Journal: Economic Policy, 10(4), 79-108. https://doi.org/10.1257/pol.20150116

• Journal Article Type: Article
• Acceptance Date: Dec 12, 2017
• Online Publication Date: Feb 27, 2018
• Publication Date: 2018-11
• Deposit Date: Feb 1, 2018
• Publicly Available Date: Aug 28, 2018
• Journal: American Economic Journal: Economic Policy
• Print ISSN: 1945-7731
• Electronic ISSN: 1945-774X
• Publisher: American Economic Association
• Peer Reviewed: Peer Reviewed
• Volume: 10
• Issue: 4
• Pages: 79-108
• DOI: https://doi.org/10.1257/pol.20150116
• Keywords: Services Trade, Trade Liberalization, Import Competition
• Public URL: https://nottingham-repository.worktribe.com/output/917552
• Publisher URL: https://www.aeaweb.org/articles?id=10.1257/pol.20150116