A Microeconomic Look at the Impact of Tariffs on Latin American Exports
The impact of tariff changes on aggregate bilateral trade flows operates through both the intensive and extensive margins of trade. However, there is a difference in the timing of this impact. After a tariff fall, the immediate adjustment in export flows comes about via the intensive margin. The reaction from the extensive margin seems to happen one year later. We thus focus on the intensive margin and find that the impact on it is heterogenous. Higher tariffs are more detrimental to larger firms than to their smaller counterparts.
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| Language: | English |
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Inter-American Development Bank
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| Subjects: | Bilateral Trade, Trade Policy, Tariff System, Export, F14 - Empirical Studies of Trade, F13 - Trade Policy • International Trade Organizations, F61 - Microeconomic Impacts, intensive margin; extensive margin; tariff liberalization, |
| Online Access: | http://dx.doi.org/10.18235/0002076 https://publications.iadb.org/en/microeconomic-look-impact-tariffs-latin-american-exports |
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