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Trade Reforms in a Global Competition Model: the Case of Chile

Author

Listed:
  • Luca David Opromolla

    (New York University - Department of Economics)

  • Alfonso Irarrazabal

    (New York University - Department of Economics)

Abstract

We use a global competition model of international trade to characterize the effects of trade reforms occurred in Chile at the end of the 70s. We calibrate the model and evaluate its results using a comprehensive plant-level dataset for the period 1979-96. The model is able to explain many of the effects of liberalization reforms on industry performance. We proceed by exploring the impact of preferential trade agreements negotiated by Chile in recent years with the European Union and the North American Free Trade Agreement.

Suggested Citation

  • Luca David Opromolla & Alfonso Irarrazabal, 2005. "Trade Reforms in a Global Competition Model: the Case of Chile," International Trade 0508007, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpit:0508007
    Note: Type of Document - pdf; pages: 25
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    References listed on IDEAS

    as
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    6. Wonnacott, Ronald J, 1996. "Free-Trade Agreements: For Better or Worse?," American Economic Review, American Economic Association, vol. 86(2), pages 62-66, May.
    7. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
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    10. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Trade Policy Options for Chile: The Importance of Market Access," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 14, pages 329-359 World Scientific Publishing Co. Pte. Ltd..
    11. Andrew B. Bernard & J. Bradford Jensen, 1999. "Exporting and Productivity," NBER Working Papers 7135, National Bureau of Economic Research, Inc.
    12. Liu, Lili, 1993. "Entry-exit, learning, and productivity change Evidence from Chile," Journal of Development Economics, Elsevier, vol. 42(2), pages 217-242, December.
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    17. repec:fth:michin:445 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Bergoeing, Raphael & Micco, Alejandro & Repetto, Andrea, 2011. "Dissecting the Chilean export boom," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    2. Breinlich, Holger & Cuñat, Alejandro, 2010. "Trade liberalization and heterogeneous firm models: an evaluation using the Canada - US Free Trade Agreement," LSE Research Online Documents on Economics 28725, London School of Economics and Political Science, LSE Library.
    3. Impullitti, Giammario & Irarrazabal, Alfonso A. & Opromolla, Luca David, 2013. "A theory of entry into and exit from export markets," Journal of International Economics, Elsevier, vol. 90(1), pages 75-90.
    4. Braymen, Charles B., 2011. "Sectoral structure, heterogeneous plants, and international trade," Economic Modelling, Elsevier, vol. 28(4), pages 1967-1976, July.
    5. Raúl O’Ryan & Mario Niklitschek & Edwin Niklitschek & Nicolo Gligo & Andres Ulloa, 2010. "Trade Liberalization, Rural Poverty and the Environment: A Case Study of the Forest and Salmon Sectors in Chile," Chapters,in: Vulnerable Places, Vulnerable People, chapter 2 Edward Elgar Publishing.
    6. Maria Bas & Ivan Ledezma, 2007. "Market Access and the Evolution of within Plant Productivity in Chile," CESifo Working Paper Series 2077, CESifo Group Munich.

    More about this item

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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