Measuring the Impact of Trade Protection on Industrial Production Size

23 Pages Posted: 3 Apr 2014

See all articles by Wei Tian

Wei Tian

University of International Business and Economics (UIBE) - School of International Trade and Economics

Miaojie Yu

Peking University - China Center for Economic Research (CCER)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2014

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

Tian, Wei and Yu, Miaojie, Measuring the Impact of Trade Protection on Industrial Production Size (May 2014). Special Issue: Issues in Asia. Guest Editor: Laixun Zhao, Vol. 18, Issue 2, pp. 231-253, 2014. Available at SSRN: https://ssrn.com/abstract=2419761 or http://dx.doi.org/10.1111/rode.12081

Wei Tian

University of International Business and Economics (UIBE) - School of International Trade and Economics

10 East Huixin Street
Chaouang District
Beijing, 100029
China

Miaojie Yu

Peking University - China Center for Economic Research (CCER) ( email )

Beijing, Beijing 100871
China
+86-10-6275-3109 (Phone)

HOME PAGE: http://mjyu.ccer.edu.cn

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