Towards Trade Policy Analysis 2.0: From National Comparative Advantage to Firm-Level Trade Data | Asian Development Bank

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Towards Trade Policy Analysis 2.0: From National Comparative Advantage to Firm-Level Trade Data

Publication | February 2015
Towards Trade Policy Analysis 2.0: From National Comparative Advantage to Firm-Level Trade Data

This paper proposes an upgraded toolbox for analyzing  trade policy making use of firm-level statistics and a much more refined product disaggregation.

This paper makes the case for the need to "upgrade" current analytical tools used for trade policy analysis and complement them with more detailed firm-level data. Such an upgrade should be based on the latest intellectual advancements in trade theories and the latest firm-level trade statistics that are now becoming widely available. An upgraded "Trade Policy Analysis 2.0" could contribute to several trade policy priorities and to a better understanding of the benefits from international trade for firm competitiveness, job creation, and consumer welfare.