文章基本信息

标题：The effect of trade liberalization on firm-level profits: an event-study approach
本地全文：下载
作者：Holger Breinlich
期刊名称：CEP Discussion Paper
出版年度：2016
卷号：2016
语种：English
出版社：Centre for Economic Performance
摘要：I use an event study approach to present novel evidence on the impact of trade liberalization on firm-level profits. Using the uncertainty surrounding the negotiation and ratification process of the Canada-United States Free Trade Agreement of 1989 (CUSFTA), I estimate the impact of different types of tariff reductions on the abnormal returns of Canadian manufacturing firms. I find that Canadian import tariff reductions lead to lower, and reductions in Canadian intermediate input tariffs to higher abnormal returns. The impact of U.S. tariff reductions is less clear and depends on the size of the affected firms. I also calculate the total profit increase implied by my estimates. Overall, CUSFTA increased per-period profits by around 1.2%. This was mainly driven by intermediate input tariff reductions which more than offset the negative effect of Canadian import tariff reductions.
关键词：Profitability;Trade Liberalization;Stock Market Event Studies;Canada-U.S. Free Trade Agreement