Abstract

https://ssrn.com/abstract=2743234
 


 



Accounting for the New Gains from Trade Liberalization


Chang-Tai Hsieh


University of Chicago - Booth School of Business; University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER)

Nicholas Li


University of Toronto - Department of Economics

Ralph Ossa


University of Chicago - Booth School of Business

Mu-Jeung Yang


University of Washington - Department of Economics

March 01, 2016

US Census Bureau Center for Economic Studies Paper No. CES-WP- 16-14

Abstract:     
We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade literature. To this end, we first develop an exact decomposition of the gains from trade which separates "traditional" and "new" gains. We then apply this decomposition using Canadian and US micro data and find that the "new" welfare effects of CUSFTA on Canada were negative.

Number of Pages in PDF File: 59

Keywords: Gains from trade, trade liberalization, CUSFTA

JEL Classification: F10, F12, F14


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Date posted: March 7, 2016  

Suggested Citation

Hsieh, Chang-Tai and Li, Nicholas and Ossa, Ralph and Yang, Mu-Jeung, Accounting for the New Gains from Trade Liberalization (March 01, 2016). US Census Bureau Center for Economic Studies Paper No. CES-WP- 16-14. Available at SSRN: https://ssrn.com/abstract=2743234 or http://dx.doi.org/10.2139/ssrn.2743234

Contact Information

Chang-Tai Hsieh (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Chicago Booth School of Business Logo

University of California, Berkeley - Department of Economics ( email )
549 Evans Hall #3880
Berkeley, CA 94720-3880
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Nicholas Li
University of Toronto - Department of Economics ( email )
150 St. George Street
Toronto, Ontario M5S 3G7
Canada
Ralph Ossa
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Chicago Booth School of Business Logo

Mu-Jeung Yang
University of Washington - Department of Economics ( email )
Box 353330
Seattle, WA 98195-3330
United States
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