An Extension of Bale's Labor Displacement Cost Estimates

Document Type

Article

Publication Date

2-1978

Department

College of Business

Abstract

Bale (1976) failed to extend his labor displacement cost estimates to the more interesting question of whether these costs outweigh gains from trade liberalization. This note addresses that question by applying Bale's estimates to Magee's (1972) study of the welfare effects of U.S. trade restrictions. Our results indicate that gains far outweigh costs of tariff removal on imports directly competing with U.S. production.

Publisher's Statement

© 1978

Publication Title

Journal of International Economics

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