On the dynamics of trade reform

Rui Albuquerque, Sergio Rebelo*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

Empirical studies of trade reforms suggest that these reforms have a surprisingly small impact on a country's industrial configuration. This industrial structure inertia is difficult to rationalize in standard trade models. This paper develops a two-sector industry dynamics model in which industrial composition inertia arises naturally. The model is then used to study the consequences of different types of trade reforms (e.g. permanent, temporary, gradual, pre-announced) on investment, employment composition and income distribution. (C) 2000 Elsevier Science B.V. All rights reserved.

Original languageEnglish (US)
Pages (from-to)21-47
Number of pages27
JournalJournal of International Economics
Volume51
Issue number1
DOIs
StatePublished - Jun 1 2000

Keywords

  • Hysteresis
  • Income distribution
  • Industry dynamics
  • Trade reform

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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