American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
From Selling Goods to Selling Services: Firm Responses to Trade Liberalization
American Economic Journal: Economic Policy
vol. 10,
no. 4, November 2018
(pp. 79–108)
Abstract
In this paper we focus on a new channel of adaptation to trade liberalization, namely the shift toward increased provision of services in lieu of goods production. We exploit variation in European Union trade policy to show that lower manufacturing tariffs lead firms to shift into services provision and out of goods production. We also find that a successful transition is associated with higher firm-level R&D stocks.Citation
Breinlich, Holger, Anson Soderbery, and Greg C. Wright. 2018. "From Selling Goods to Selling Services: Firm Responses to Trade Liberalization." American Economic Journal: Economic Policy, 10 (4): 79–108. DOI: 10.1257/pol.20150116Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- F13 Trade Policy; International Trade Organizations
- F14 Empirical Studies of Trade
- L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
- L60 Industry Studies: Manufacturing: General
- L80 Industry Studies: Services: General
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