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Measuring the Impact of Trade Protection on Industrial Production Size

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  • Wei Tian
  • Miaojie Yu

Abstract

Trade theory has no clear prediction on how import protection affects an importing sector's relative size. In this paper, we estimate the impact of US trade protection on industrial production relative size based on a translog GDP functional system. Using an industrial panel data set and controlling for factor endowments and technology improvement, we find empirical evidence that trade protection does not help much increase a sector's relative size. Such findings are also robust to both the inclusion of the role of political economy and the coverage of various non-tariff measures as proxies of industrial protection.

Suggested Citation

  • Wei Tian & Miaojie Yu, 2014. "Measuring the Impact of Trade Protection on Industrial Production Size," Review of Development Economics, Wiley Blackwell, vol. 18(2), pages 231-253, May.
    • Handle: RePEc:bla:rdevec:v:18:y:2014:i:2:p:231-253
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    File URL: http://hdl.handle.net/10.1111/rode.12081
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    References listed on IDEAS

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    Cited by:

    1. Ya‐Po Yang & Ying‐Yi Tsai & Su‐Ying Hsu, 2021. "Technology licensing, entry mode, and trade liberalization," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 834-853, May.
    2. Qing Liu & Larry Qiu & Miaojie Yu, 2017. "Worker Training, Firm Productivity, and Trade Liberalization: Evidence from Chinese Firms," The Developing Economies, Institute of Developing Economies, vol. 55(3), pages 189-209, September.

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