TY  - BOOK
AU  - Caliendo,Lorenzo
AU  - Feenstra,Robert C.
AU  - Romalis,John
AU  - Taylor,Alan M.
ED  - National Bureau of Economic Research.
TI  - Tariff Reductions, Entry, and Welfare: Theory and Evidence for the Last Two Decades 
T2  - NBER working paper series
PY  - 2015///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - December 2015; Hardcopy version available to institutional subscribers
N2  - We show in a multi-sector, heterogeneous-firm trade model that the effect of tariffs on entry, especially in the presence of production linkages, can reverse the traditional positive optimal tariff argument. We then use a new tariff dataset, and apply it to a 189-country, 15-sector version of our model, to quantify the trade, entry, and welfare effects of trade liberalization over the period 1990-2010. We find that the impact on firm entry was larger in Advanced relative to Emerging and Developing countries; that slightly more than three-quarters of the total gains from trade are a consequence of the reductions in MFN tariffs (the Uruguay Round), with two-thirds of the remainder due to preferential trade agreements and one third due to the hypothetical movement to free trade; and that free trade would bring gains for some Emerging and Developing countries, in particular. Ten economies in our sample - including China, Hong Kong, India, Israel, Vietnam, and five more remote countries - would have benefited from going beyond free trade to subsidizing their imports in 1990, since their optimal tariffs are negative
UR  - https://www.nber.org/papers/w21768
UR  - http://dx.doi.org/10.3386/w21768
ER  -