Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence

Abstract

Firm-and plant-level empirical studies typically find that trade liberalization squeezes pricecost 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.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 33 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.