Using Equity Market Reactions to Infer Exposure to Trade Liberalization

Andrew Greenland, Mihai Ion, John Lopresti and Peter Schott

No 27510, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We propose a method for identifying exposure to changes in trade policy based on asset prices that has several advantages over standard measures: it encompasses all avenues of exposure, it is natively firm-level, it yields estimates for both goods and service producers, and it can be used to study reductions in difficult-to-quantify non-tariff barriers in a way that controls naturally for broader macroeconomic shocks. Applying our method to two well-studied US trade liberalizations provides new insight into service sector responses to trade liberalizations as well as dramatically different responses among small versus large firms, even within narrow industries.

JEL-codes: E0 F13 F14 G12 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-bec, nep-int and nep-mac
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Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Using equity market reactions to infer exposure to trade liberalization (2024)
Working Paper: Using Equity Market Reactions to Infer Exposure to Trade Liberalization (2022)
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