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PRWP

Reproducibility package for Trade Effects of Industrial Policies: Are Preferential Agreements a Shield?

2024
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Reference ID
RR_EAP_2024_161
Author(s)
Alessandro Barattieri, Aaditya Mattoo, Daria Taglioni, Maria Del Mar Gomez Ortiz
Collections
World Bank Policy Research Working Papers
Metadata
JSON
Created on
Aug 16, 2024
Last modified
Nov 18, 2024
  • Overview
  • Reproducibility Package
  • Description
  • Scope and coverage
  • Disclaimer
  • Access and rights
  • Contacts
  • Information on metadata

    • Overview

    Abstract

    This paper explores the effects of industrial policy on trade, focusing on the role of preferential trade agreements. The analysis uses data for the period 2012–2022 on detailed product-level bilateral trade, industrial policy announcements, and rules on subsidies in different preferential trade agreements. The introduction of a new industrial policy measure in a destination market reduces export growth to that market on average by about 0.28 percent. However, exports from fellow members of preferential trade agreements are not adversely affected and may even be positively affected if the agreements have deep disciplines on subsidies. These findings suggest that preferential trade agreements have a shielding effect against the trade distorting effects of industrial policies.

    Reproducibility Package

    Scripts
    Get Reproducibility Package
    Title
    Reproducibility package (code and data) for Trade Effects of Industrial Policies: Are Preferential Agreements a Shield?
    Dependencies
    All Stata dependency files are included in the folder "2_Do_files/ado".
    Instructions
    See README in the reproducibility package
    Notes
    Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.
    Source code repository
    Repository name URI
    Reproducible Research Repository (World Bank) https://reproducibility.worldbank.org
    Software
    Name
    Stata
    Version
    18 MP
    Name
    R
    Version
    4.3.0

    Reproducibility

    Technology environment

    Paper exhibits were reproduced in a computer with the following specifications:
    – OS: Windows 11 Enterprise
    – Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
    – Memory available: 15.7 GB
    – Software version: R 4.3.0; Stata version 18 MP
    Technology requirements

    Runtime: 15 hours
    Reproduction instructions

    Users need to change the global path in line 20 of the do-file "0-master", run it, and then run the R script "3-Split Sectors-Products.R". Optional instructions for reproducing the R environment with renv are included in the README.

    Data

    Datasets
    Name
    Global Trade Alert Database
    Note
    Data was acquired on November 2023 by downloading the complete dataset in R from the data URL ("2008 to latest (Rdata)") and saving the results in the data file "GTA-OCT-23.csv".
    Access policy
    Data is public and included in the reproducibility package
    License
    Creative Commons Attribution 4.0 International license
    License URL
    https://creativecommons.org/licenses/by-nc/4.0/
    Data URL
    https://www.globaltradealert.org/data_extraction
    Name
    BACI trade flows by year - HS12
    Note
    Data files: "BACI_HS12_Y[year]_V202401.csv". Data was acquired on January 2024 from the data URL.
    Access policy
    Data is public and included in the reproducibility package
    License
    Etalab 2.0
    License URL
    https://www.etalab.gouv.fr/wp-content/uploads/2018/11/open-licence.pdf
    Data URL
    http://www.cepii.fr/CEPII/en/bdd_modele/bdd_modele_item.asp?id=37
    Name
    Deep Trade Agreements
    Note
    Data file: "DTA 2.0 - Vertical Content (v2).xlsx". Data was acquired on March 2024 from the data URL.
    Access policy
    Data is public and included in the reproducibility package
    License
    Creative Commons Attribution 4.0 International License
    License URL
    https://creativecommons.org/licenses/by-nc/4.0/
    Data URL
    https://datatopics.worldbank.org/dta/table.html
    Name
    Global Trade Alert - New Industrial Policy Observatory
    Note
    Data file: "GTA_NIPO.xls". Data was acquired on February 2024 from the data URL (Link "Download inventory": https://gtaupload.s3.eu-west-1.amazonaws.com/Uploads/web/NIPO/GTA+NIPO+-+latest+release.xlsx).
    Access policy
    Data is public and included in the reproducibility package
    License
    Creative Commons Attribution 4.0 International License
    License URL
    https://creativecommons.org/licenses/by-nc/4.0/
    Data URL
    https://www.globaltradealert.org/reports/112
    Name
    US Imports from the Census Bureau
    Note
    Data file: "Standard Report - Imports.xlsx". The data was acquired by running a query in the data URL by selecting all imports by NAICS and then selecting all imports to all districts from 2017m1 to 2024m2 for the following origin countries: World total, China, ASEAN, Canada, Mexico, and USMCA. Data were accessed in April 2024.
    Access policy
    Data is public and included in the reproducibility package
    License URL
    https://www.census.gov/foreign-trade/statistics/dataproducts/uto-help/faq.html
    Data URL
    https://usatrade.census.gov/
    Name
    Country ISO codes BACI database
    Note
    Data was downloaded from the data URL from the link "HS12". This compressed file includes a file named “country_codes_V202401b.csv”. We manually kept only the columns “country_code” and “country_iso3”, created a copy of both for easier data processing later on (“country_code” was copied into the columns “j” and “I”, and “country_iso3” was copied into “IMP” and “EXP”), and saved the result into Stata. A copy of the resulting data is provided as part of this archive in the file “BACI_ISO_Codes.dta”. Data were accessed in January 2024.
    Access policy
    Data is public and included in the reproducibility package
    License
    Etalab 2.0
    License URL
    https://www.etalab.gouv.fr/wp-content/uploads/2018/11/open-licence.pdf
    Data URL
    http://www.cepii.fr/CEPII/en/bdd_modele/bdd_modele_item.asp?id=37
    Name
    World Bank country income classification
    Note
    Data was downloaded from the data URL and the income classification values of the tab "Country Analytical History" for 2007 and 2021 were manually copied into Stata and saved in the files "WB income classification 2007.dta" and "WB income classification 2021.dta". Data was accessed on January 2024.
    Access policy
    Data is public and included in the reproducibility package
    License
    Creative Commons Attribution 4.0 International License
    License URL
    https://creativecommons.org/licenses/by-nc/4.0/
    Data URL
    https://datacatalogfiles.worldbank.org/ddh-published/0037712/DR0090754/OGHIST.xlsx
    Name
    Crosswalk HS codes and ISIC categories
    Note
    Data was downloaded from the link "H4 to ISIC Rev 3" of the panel "HS 2012 or H4" of the data URL. Data was manually copied into Stata keeping only the columns "HS 2012 Product Code" (renamed to "HS2012") and "ISIC Revision 3 Product Code" (renamed to "ISIC3_2") and saved in the file "HS2012_ISIC3.dta". Data was accessed on January 2024.
    Access policy
    Data is public and included in the reproducibility package
    License
    Creative Commons Attribution 4.0 International License
    License URL
    https://creativecommons.org/licenses/by-nc/4.0/
    Data URL
    https://wits.worldbank.org/product_concordance.html
    Name
    GDP in 2021
    Note
    Data was downloaded from the data URL and manually copied into Stata keeping only the columns "Country code" (renamed to "Economy") and 2021 (renamed to "gdp_pc"). A column with the logarithm of "gdp_pc" was then created with the name "ln_gdp_pc". The resulting data was saved in the file "GDP-21.dta". Data was accessed on January 2024.
    Access policy
    Data is public and included in the reproducibility package
    License
    Creative Commons Attribution 4.0 International License
    License URL
    https://creativecommons.org/licenses/by-nc/4.0/
    Data URL
    https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.KD
    Data statement

    All data sources are publicly available and included in the reproducibility package.

    Description

    Output
    Type
    Working paper
    Title
    Trade Effects of Industrial Policies: Are Preferential Agreements a Shield?
    Authors
    Alessandro Barattieri, Aaditya Mattoo, Daria Taglioni
    Description
    Policy Research Working Paper (PRWP) 10806
    URL
    http://documents.worldbank.org/curated/en/099310406172411550/IDU154197ea11b0ca145c81a7371f9425c7549d7
    DOI
    https://doi.org/10.1596/1813-9450-10806
    Authors
    Author Affiliation Email
    Alessandro Barattieri World Bank abarattieri@worldbank.org
    Aaditya Mattoo World Bank amattoo@worldbank.org
    Daria Taglioni World Bank dtaglioni@worldbank.org
    Maria Del Mar Gomez Ortiz World Bank mgomezortiz@worldbank.org
    Date of production

    2024-06

    Scope and coverage

    Geographic locations
    Location Code
    World WLD
    Keywords
    Industrial Policies Trade Preferential Trade Agreements
    Topics
    ID Topic Parent topic ID Vocabulary Vocabulary URI
    F10 Trade - General F1 Journal of Economic Literature
    F14 Empirical Studies of Trade F1 Journal of Economic Literature
    F15 Economic Integration F1 Journal of Economic Literature
    L52 Industrial Policy • Sectoral Planning Methods L5 Journal of Economic Literature

    Disclaimer

    Disclaimer

    The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.

    Access and rights

    License
    Name URI
    Modified BSD3 https://opensource.org/license/bsd-3-clause/

    Contacts

    Contacts
    Name Affiliation Email
    Alessandro Barattieri World Bank abarattieri@worldbank.org
    Reproducibility WBG World Bank reproducibility@worldbank.org

    Information on metadata

    Producers
    Name Abbreviation Affiliation Role
    Reproducibility WBG DIME World Bank - Development Impact Department Verification and preparation of metadata
    Date of Production

    2024-07-01
    Document version

    1
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