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On the dynamics of trade reform

On the dynamics of trade reform

Authors :
Rui Albuquerque
Sergio Rebelo
Source :
Journal of International Economics. 51:21-47
Publication Year :
2000
Publisher :
Elsevier BV, 2000.

Abstract

Empirical studies of trade reforms suggest that these reforms have a surprisingly small impact on a country's industrial configuration. This industrial structure inertia is difficult to rationalize in standard trade models. This paper develops a two-sector industry dynamics model in which industrial composition inertia arises naturally. The model is then used to study the consequences of different types of trade reforms (e.g. permanent, temporary, gradual, pre-announced) on investment, employment composition and income distribution.

Details

ISSN :
00221996
Volume :
51
Database :
OpenAIRE
Journal :
Journal of International Economics
Accession number :
edsair.doi...........ee4c20b824edc9a78b5f919e19d52e16
Full Text :
https://doi.org/10.1016/s0022-1996(99)00036-7