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Unformatted text preview: Reform was a package and the whole package was a surprise identica-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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- Spring '10