NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Accounting for the New Gains from Trade Liberalization

Chang-Tai Hsieh, Nicholas Li, Ralph Ossa, Mu-Jeung Yang

NBER Working Paper No. 22069
Issued in March 2016, Revised in October 2016
NBER Program(s):Economic Fluctuations and Growth, International Trade and Investment, Productivity, Innovation, and Entrepreneurship

We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare e¤ects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade literature. To this end, we first develop an exact decomposition of the gains from trade which separates "traditional" and "new" gains. We then apply this decomposition using Canadian and US micro data and find that the "new" welfare effects of CUSFTA on Canada were negative.

download in pdf format
   (1157 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22069

Users who downloaded this paper also downloaded* these:
Limão w22138 Preferential Trade Agreements
Bagwell and Staiger w22087 The Design of Trade Agreements
Waugh and Ravikumar w22147 Measuring Openness to Trade
Grossman w22070 The Purpose of Trade Agreements
De Loecker and Van Biesebroeck w21994 Effect of International Competition on Firm Productivity and Market Power
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us