@techreport{NBERw9947, title = "Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence", author = "Erkan Erdem and James Tybout", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "9947", year = "2003", month = "September", URL = "http://www.nber.org/papers/w9947", abstract = {Firm- and plant-level empirical studies typically find that trade liberalization squeezes price-cost margins among import-competing firms, that this heightened competitive pressure induces productivity gains among these same firms, and that further efficiency gains come from market share reallocations. Using a computable industrial evolution model to simulate the dynamic effects of import competition, we demonstrate what types of managerial behavior, long-term transition paths and welfare effects are consistent with this set of stylized facts.}, }