Trade Policy and Structural Change

Kato, Hayato; Suzuki, Kensuke; Takahashi, Motoaki

Discussion Papers In Economics And Business, 2025, 25-07

Number of Access:12（2025-09-04 08:29 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/102579

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Title
Trade Policy and Structural Change
Creator
NRID
1000030837703 1000030837703
ORCID
0000-0002-2063-8453 0000-0002-2063-8453
researchmap permalink
30837703 30837703
Scopus Author ID
57200115385 57200115385
CreatorName
Kato, Hayato
CreatorName
Suzuki, Kensuke
CreatorName
Takahashi, Motoaki
Subject
Ricardian model of trade
Structural transformation
Nonhomothetic preferences
Capital accumulation
Trade war
JEL
F11
F13
O41
Abstract
We examine how tariffs affect sectoral composition and welfare in an economy with nonhomothetic preferences and sectors being complements—key drivers of structural change. Beyond their conventional role in trade protection, tariffs influence industrial structure by altering relative prices and income levels. We qualitatively characterize these mechanisms and use a quantitative dynamic model to show that a counterfactual 20-percentage-point increase in U.S. manufacturing tariffs since 2001 would have raised the manufacturing value-added share by one percentage point and increased welfare by 0.36 percent. However, if all the U.S. trading partners responded reciprocally, U.S. welfare would have declined by 0.12 percent.
Publisher
Graduate School of Economics, The University of Osaka
Source Title
Discussion Papers In Economics And Business
Volume (Issue)
25-07
Date of Issued
2025-08
Language
English
Handle URL
https://hdl.handle.net/11094/102579
Relation.references
URI
https://www2.econ.osaka-u.ac.jp/econ_society/dp/2507.pdf
Access Rights
metadata only access
Category
ディスカッション／ワーキング・ペーパー DP/WP
Discussion Papers In Economics And Business