Accounting for the New Gains from Trade Liberalization

Chang-Tai Hsieh, Nicholas Li, Ralph Ossa and Mu-Jeung Yang

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: We measure the "new" gains from trade reaped by Canada as a result of the Canada-US Free Trade Agreement (CUSFTA). We think of the "new" gains from trade of a country as all welfare effects pertaining to changes in the set of firms serving that country as emphasized in the so-called "new" trade literature. To this end, we first develop an exact decomposition of the gains from trade which separates "traditional" and "new" gains. We then apply this decomposition using Canadian and US micro data and find that the "new" welfare effects of CUSFTA on Canada were negative.

Keywords: Gains from trade; trade liberalization; CUSFTA (search for similar items in EconPapers)
JEL-codes: F10 F12 F14 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2016-03
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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https://www2.census.gov/ces/wp/2016/CES-WP-16-14.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Accounting for the new gains from trade liberalization (2020)
Working Paper: Accounting for the new gains from trade liberalization (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:16-14

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