Measuring the Impact of Trade Protection on Industrial Production Size

39 Pages Posted: 18 Jan 2007 Last revised: 2 Jan 2008

See all articles by Miaojie Yu

Miaojie Yu

Peking University - China Center for Economic Research (CCER)

Multiple version iconThere are 2 versions of this paper

Date Written: Dec. 31, 2007

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 U.S. 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. In particular, in some industries like garments, high trade protection leads to low industrial 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.

Keywords: Industrial Output Share, Tariff, Non-tariff Barriers, Translog GDP Function

JEL Classification: F13, F14

Suggested Citation

Yu, Miaojie, Measuring the Impact of Trade Protection on Industrial Production Size (Dec. 31, 2007). Available at SSRN: https://ssrn.com/abstract=957979 or http://dx.doi.org/10.2139/ssrn.957979

Miaojie Yu (Contact Author)

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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