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Nov
2
IRES Lunch Seminar - Elsa Leromain, IRES/LIDAM, UCLouvain
By IRES Lunch Seminar

Elsa Leromain

IRES/LIDAM, UCLouvain

will give a presentation on

Import Liberalization as Export Destruction? Evidence from the US

Abstract:

How does import protection affect export performance? In trade models with scale economies, import liberalization can reduce an industry's exports by cutting domestic production. We find this export destruction mechanism reduced US export growth following the normalization of trade relations with China (PNTR). But there was also an offsetting boost to exports from lower input costs. We use our empirical results to calibrate the strength of scale economies in a quantitative trade model. Counterfactual analysis implies that while PNTR increased aggregate US exports relative to GDP, exports declined in the most exposed industries because of the export destruction effect. On aggregate, the US and China both gain from PNTR, but the gains are larger for China

Date
02 November
Time
12:45 - 14:00
Location
Doyen 22
Place des Doyens, 1
Ottignies-Louvain-la-Neuve,
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