Are All Trade Protection Policies Created Equal? Empirical Evidence for Nonequivalent Market Power Effects of Tariffs and Quotas / Bruce Blonigen, Benjamin H. Liebman, Justin R. Pierce, Wesley W. Wilson.

Format:

Book

Author/Creator:

Blonigen, Bruce.

Contributor:

National Bureau of Economic Research.

Liebman, Benjamin H.

Pierce, Justin R.

Wilson, Wesley W.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16391.

NBER working paper series no. w16391

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

Over the past decades, the steel industry has been protected by a wide variety of trade policies, both tariff- and quota-based. We exploit this extensive heterogeneity in trade protection to examine the well-established theoretical literature predicting nonequivalent effects of tariffs and quotas on domestic firms' market power. Robust to a variety of empirical specifications with U.S. Census data on the population of U.S. steel plants from 1967-2002, we find evidence for significant market power effects for binding quota-based protection, but not for tariff-based protection. There is only weak evidence that antidumping protection increases market power.

Notes:

Print version record

September 2010.