KOF Swiss Economic Institute
8092 Zurich, Switzerland
NBER Working Papers and Publications
|September 2011||Who Benefits from Regional Trade Agreements? The View from the Stock Market|
with Andrew K. Rose: w17415
The effects of Regional Trade Agreements (RTAs) are disputed. In this paper, we assess these effects using capital market data and an event-study approach, using a daily data set covering a thousand announcements spanning over eighty economies and a hundred RTAs over twenty recent years. We measure the effects of news concerning RTAs on the returns of national stock markets, adjusted for international stock market movements. We then link these excess returns to features of the RTA members and the agreements themselves. We find evidence of the natural trading partner hypothesis; stock markets rise more when RTAs are signed between countries that already engage in high volumes of trade. Stock markets also rise more when poorer countries sign RTAs.
Published: Moser, Christoph & Rose, Andrew K., 2014. "Who benefits from regional trade agreements? The view from the stock market," European Economic Review, Elsevier, vol. 68(C), pages 31-47. citation courtesy of
|May 2010||The Contribution of Trade to Wage Inequality: The Role of Skill, Gender, and Nationality|
with Michael W. Klein, Dieter M. Urban: w15985
International trade has been cited as a source of widening wage inequality in industrial nations. Consistent with this claim, we find a significant export wage premium for high-skilled workers in German manufacturing and an export wage discount for lower skilled workers, using matched employer-employee data. Estimates suggest that the export wage premium to high-skilled workers represents up to one third of their overall skill premium. But, while an increase in exports increases wage inequality along the dimension of skill, it diminishes the wage inequality associated with both gender and nationality. In this way, trade contributes to narrowing wage gaps and mitigating wage inequality in German manufacturing.
Published: Labour Economics Volume 25, December 2013, Pages 76–85 European Association of Labour Economists 24th Annual Conference, Bonn, Germany, 20-22 September 2012 Cover image Exporting, skills and wage inequality ☆ Michael W. Kleina, , Christoph Moserb, , , Dieter M. Urbanc, 1