Empirical Analysis of Trade Policy and Corporate Behavior

2008 - 2010

The purpose of this project is to empirically assess and analyze the impact and effect of trade policies on the behavior of firms and structure of industries. Traditional research in this field often assumes the existence of a representative firm and has focused mainly on the evaluation of economic welfare. More recent research attempts to put more emphasis on the aspects of firm heterogeneity while allowing for strategic interactions among firms. In a globalized economy, firms will not necessarily respond passively to trade policies. For instance, it is known that firms will take a strategic approach to influencing policymaking processes. On the other hand, empirical analyses aimed at determining the validity of this theoretical possibility have only been recently started. Against the backdrop of the increased globalization of corporate activities and the expansion and development of East Asian business networks, this project will focus on analyzing firm behavior while empirically evaluating the impact of international trade systems and trade policies.

August 26, 2008 - February 28, 2011