Policy and Politics: Trade Adjustment Assistance in the Crossfire

Christopher Lainez (cal38@drexel.edu), Xenia Matschke and Yoto Yotov
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Christopher Lainez: School of Economics Drexel University, Postal: LeBow College of Business, Drexel University, Philadelphia, PA 19104
Authors registered in the RePEc Author Service: Christopher A. Laincz (claincz@drexel.edu)

No 2016-5, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: The United States introduced Federal Trade Adjustment Assistance (TAA) as part of the 1962 Trade Expansion Act to dampen the adverse impact of increased trade on workers. Applications to receive TAA require approval from the Department of Labor. Guided by the technical criteria used by the U.S. government in the official TAA certification process, we capitalize on a rich multi-dimensional panel dataset to quantify the effects of political influence on the TAA certification decision. We find that political factors such as party affiliation of the President, voting outcomes at the state level, and whether a petition was certified in an election year influence the TAA certification outcome. Those effects remain even when including a wide array of controls and a rich set of fixed effects.

Keywords: trade adjustment assistance; political economy; trade protection (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2016-05-15
New Economics Papers: this item is included in nep-cdm, nep-int and nep-pol
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Related works:
Journal Article: Policy and politics: Trade adjustment assistance in the crossfire (2021)
Working Paper: Policy and Politics: Trade Adjustment Assistance in the Crossfire (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2016_005

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