Discussion Paper
The Quantitative Effects of Trade Policy on Industrial and Labor Location
Published: October 2020
Researchers analyze the impact of trade policy on the location of firms and the implications that such impacts have for trends in manufacturing firms and employment in the U.S.
Using data on trade, production, and firm demographics, researchers developed a multi-country, multi-sector dynamic general-equilibrium trade and spatial model to evaluate the interaction of trade policy and firm location. They find that changes in trade policy can result in persistent increases in manufacturing firms and employment in the U.S., though at the cost of higher prices, lower household welfare, and heterogenous effects on firm entry.
Abstract and Citation
Caliendo, Lorenzo, and Fernando Parro. The Quantitative Effects of Trade Policy on Industrial and Labor Location. 10 Nov. 2020, https://spinup-000d1a-wp-offload-media.s3.amazonaws.com/faculty/wp-cont….