Unformatted text preview: Reform was a package and the whole package was a surprise – identi±ca-tion strategy does not tease out trade liberalization from other effects Showing that tariff changes were unexpected and that they moved to-gether does not solve this problem Problem is that having an industrial structure that implies as a district you are exposed to tariff reductions is likely to mean that you are also exposed to industrial de-licensing, ±nancial liberalization etc. For e.g, having a large industry presence in a district may mean that one is exposed to tariff reductions and industrial deregulation in similar sectors – both of which are going to reduce barriers to entry Could include some of these as controls (e.g. no of bank branches, en-try deregulation weighted by employment share to capture exposure of Indian district to entry deregulation) Instrument “non-scaled tariffs” tariff dt , which omits non-traded sectors Development Economics, LSE Summer School 2007 182...
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This note was uploaded on 12/29/2011 for the course ECO 307 taught by Professor Dublin during the Spring '10 term at SUNY Stony Brook.
- Spring '10