Regional Effects of Trade Reform: What is the Correct Measure of Liberalization?
构建了一个区域经济特定要素模型，为使用行业加权平均衡量贸易自由化提供了理论基础，并基于巴西1990年代初的贸易改革发现，面临更大价格下降的区域工资下降幅度更大。
A growing body of research examines the regional effects of trade liberalization using a weighted average of trade policy changes across industries. This paper develops a specific-factors model of regional economies that provides a theoretical foundation for this intuitively appealing empirical approach and also provides guidance on treatment of the nontraded sector. In the context of Brazil's early 1990s trade liberalization, I find that regions facing a 10 percentage point larger liberalization-induced price decline experienced a 4 percentage point larger wage decline. The results also confirm the empirical relevance of appropriately dealing with the nontraded sector.