Abstract
We replicate the findings of Emlinger and Guimbard (ERAE, 2020) on the heterogeneous effects of per-unit tariffs on trade patterns for developed and developing countries. The general findings of the original study hold, with remarkable differences. First, using a data set that is constructed in a replicable way and introducing highly relevant bilateral fixed effects reduce effect sizes and the level of statistical significance. Second, the Alchian-Allen effect is not clearly separated by the economic development dimension of the exporter, but rather dependent on the price levels of the traded goods. These results have important policy implications as they call for deeper investigation on countries’ industrial structures of exports to better shape the international debate on trade negotiations.
