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MI, Dai ; Yifan, Zhang ; Wei, Huang ; Yifan, Zhang ; Wei, Huang. (2018) How Do Households Adjust to Trade Liberalization? Evidence from Chinas WTO Accession.
In: IZA Discussion Papers. RePEc:iza:izadps:dp11428.
Full description at Econpapers
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We construct regional tariff uncertainty measures as follows. First, following Handely and Limao (2017) and Pierce and Schott (2016), we define tariff uncertainty for each HS 8-digit product as the difference between the MFN tariff and the US “Column 2†tariff in year 2000. We call this tariff uncertainty measure “GAPâ€: GAPg = Tarif fcolumn2,g −Tarif fMFN,g Second, we map HS 8-digit goods to 4-digit CIC industry, and calculate the CIC industry level GAP as the simple average of the GAP for all HS products within this industry. Third, we calculate the GAP for each city as the weighted average of GAP across all industries in the city, where we use the share of an industry’s export value in the city’s total export value in 2000 as weights.14 GAPc = ∑ g
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