TY  - JOUR
AU  - Erdem,Erkan
AU  - Tybout,James
TI  - Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9947
PY  - 2003
Y2  - September 2003
UR  - http://www.nber.org/papers/w9947
L1  - http://www.nber.org/papers/w9947.pdf
N1  - Author contact info:
James R. Tybout
Department of Economics
Penn State University
517 Kern Graduate Building
University Park, PA  16802
Tel: 814/865-4259
Fax: 814/863-4775
E-Mail: jtybout@psu.edu
AB  - 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.
ER  -