EconPapers    
Economics at your fingertips  
 

Exporting under Trade Policy Uncertainty: Theory and Evidence

Kyle Handley

No 634, Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: I provide novel evidence for the impact of trade policy uncertainty on exporters. In a dynamic, heterogeneous firms model, trade policy uncertainty will delay the entry of exporters into new markets and make them less responsive to applied tariff reductions. Policy instruments that reduce or eliminate uncertainty, such as binding trade policy commitments at the WTO, increase entry. The predictions are tested on disaggregated, product-level Australian imports with model-consistent measures of uncertainty. Reducing policy uncertainty generates more product entry than unilateral liberalization. The results illuminate and quantify an important new channel for trade creation.

Keywords: policy uncertainty; trade; World Trade Organization; bindings (search for similar items in EconPapers)
JEL-codes: D8 D9 E6 F1 F5 (search for similar items in EconPapers)
Date: 2012-05
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (17) Track citations by RSS feed

Downloads: (external link)
http://www.fordschool.umich.edu/rsie/workingpapers/Papers626-650/r634.pdf

Related works:
Journal Article: Exporting under trade policy uncertainty: Theory and evidence (2014) Downloads
Working Paper: Exporting under trade policy uncertainty: Theory and evidence (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mie:wpaper:634

Access Statistics for this paper

More papers in Working Papers from Research Seminar in International Economics, University of Michigan Contact information at EDIRC.
Series data maintained by FSPP Webmaster ().

 
Page updated 2017-10-11
Handle: RePEc:mie:wpaper:634