Basing their method on asset prices, researchers find that their proposed method for identifying exposure to changes in trade policy has various advantages over standard measures. They apply this method to two U.S. trade liberalizations and find new insights into services sector responses to these liberalizations, including a dramatic difference in such responses between large and small firms.
Abstract and Citation
"Using Equity Market Reactions to Infer Exposure to Trade Liberalization
Andrew N. Greenland, Mihai Ion, John W. Lopresti, and Peter K. Schott
NBER Working Paper No. 27510
July 2020, Revised June 2022
JEL No. E0,F13,F14,G12"