Self-Harming Trade Policy? Protectionism and Production Networks

Alessandro Barattieri and Matteo Cacciatore

No 27630, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using monthly data on temporary trade barriers (TTBs), we estimate the dynamic employment effects of protectionism through vertical production linkages. First, exploiting procedural details of TTBs and high-frequency data, we identify movements in protectionism exogenous to economic fundamentals. We then use input-output tables to construct measures of protectionism affecting downstream producers. Finally, we estimate panel local projections using the identified trade-policy shocks. Protectionism has small and insignificant beneficial effects in protected industries. In contrast, the effects in downstream industries are negative, sizable, and significant. The employment decline follows an increase in intermediate-inputs and final goods prices.

JEL-codes: F13 F14 F62 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-int and nep-net
Note: IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published as Alessandro Barattieri & Matteo Cacciatore, 2023. "Self-Harming Trade Policy? Protectionism and Production Networks," American Economic Journal: Macroeconomics, vol 15(2), pages 97-128.

Downloads: (external link)
http://www.nber.org/papers/w27630.pdf (application/pdf)

Related works:
Journal Article: Self-Harming Trade Policy? Protectionism and Production Networks (2023)
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:nbr:nberwo:27630

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w27630

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().