Adjustment in the process of trade liberalization: The U.S. and Mexico

1991 ◽  
Vol 2 (2) ◽  
pp. 157-165 ◽  
Author(s):  
Sven W. Arndt
Keyword(s):  
1994 ◽  
Vol 22 (4) ◽  
pp. 43-54 ◽  
Author(s):  
Khosrow Doroodian ◽  
Roy G. Boyd ◽  
Matloob Piracha

Author(s):  
Josh Ederington ◽  
Arik Levinson ◽  
Jenny Minier

Abstract U.S. Presidential Executive Order 13141 commits the United States to a careful assessment and consideration of the environmental impacts of trade agreements. The most direct mechanism through which trade liberalization would affect environmental quality in the U.S. is through the composition of industries. Freer trade means greater specialization, increasing the concentration of polluting industries in some countries and decreasing it in others. We begin by documenting the substantial shift in U.S. manufacturing toward cleaner industries from 1972 to 1994. We then use annual industry-level data on imports to the U.S. to examine whether this compositional shift can be traced to the significant trade liberalization that occurred over the same time period, and we conclude that no such connection exists. A shift toward cleaner industries has also occurred among U.S. imports, and we find no evidence that pollution-intensive industries have been disproportionately affected by the tariff changes.


2012 ◽  
Vol 127 (3) ◽  
pp. 1393-1467 ◽  
Author(s):  
Lorenzo Caliendo ◽  
Esteban Rossi-Hansberg

Abstract A firm's productivity depends on how production is organized. To understand this relationship we develop a theory of an economy where firms with heterogeneous demands use labor and knowledge to produce. Entrepreneurs decide the number of layers of management and the knowledge and span of control of each agent. As a result, in the theory, heterogeneity in demand leads to heterogeneity in productivity and other firms' outcomes. We use the theory to analyze the impact of international trade on organization and calibrate the model to the U.S. economy. Our results indicate that, as a result of a bilateral trade liberalization, firms that export will increase the number of layers of management. The new organization of the average exporter results in higher productivity, although the responses of productivity are heterogeneous across these firms. Liberalizing trade from autarky to the level of openness in 2002 results in a 1% increase in productivity for the marginal exporter and a 1.8% increase in its revenue productivity. Endogenous organization increases the gains from trade by 41% relative to standard models.


2015 ◽  
Vol 8 (4) ◽  
pp. 223
Author(s):  
Wei-en Tan

<p>This essay argues that the global trade liberalization, particularly since 1995, strengthens some transnational corporations (TNCs) to become more powerful. In this sense, some statements argued by state-centric realism have to be revised; however, doing that does not mean that realism is fully out-of-date. The case studies suggest that mother country, such as the U.S., is a critical agent for TNCs to project their power and/or to protect their vital interest in the global market. In other word, sovereign state, especially the stronger one, is still important under some specific conditions. Ironically, most countries in the global south are increasingly retreating from the stage of international trade while TNCs from the North are detaining many efficient means of control over technology, capital and even political access.</p>


1993 ◽  
Vol 22 (1) ◽  
pp. 37-47 ◽  
Author(s):  
Shangnan Shui ◽  
Michael K. Wohlgenant ◽  
John C. Beghin

This study investigates the effects on the U.S. cotton industry of textile trade liberalization using a multi-market equilibrium displacement model. The simulation results suggest that textile trade liberalization would induce small changes in the total demand for U.S. cotton but would affect considerably U.S. cotton demand structure, making U.S. cotton growers more dependent on world markets. The welfare analyses reveal that textile trade liberalization would result in a small welfare loss for U.S. cotton producers. As expected, textile trade liberalization also would lead to considerable substitution of imports for domestic production and substantial declines in prices of all textile products.


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