Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP
Which companies gain and which companies lose from trade agreements? In contrast to a view that sees the largest companies as the main beneficiaries of trade agreements, we argue that medium-sized companies gain the most from them. Moreover, we examine whether more capital-intensive and more diversi...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Cogitatio
2023-11-01
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| Series: | Politics and Governance |
| Subjects: | |
| Online Access: | https://www.cogitatiopress.com/politicsandgovernance/article/view/7146 |
| _version_ | 1797448449938948096 |
|---|---|
| author | Andreas Dür Lisa Lechner |
| author_facet | Andreas Dür Lisa Lechner |
| author_sort | Andreas Dür |
| collection | DOAJ |
| description | Which companies gain and which companies lose from trade agreements? In contrast to a view that sees the largest companies as the main beneficiaries of trade agreements, we argue that medium-sized companies gain the most from them. Moreover, we examine whether more capital-intensive and more diversified companies benefit more than other firms. Our empirical test relies on a dataset with daily firm-level stock price data for close to 4,000 US companies over the period 2009–2016. Concretely, we assess how the shares of different types of firms reacted to the news on the (lack of) progress of the negotiations aimed at concluding the TPP and TTIP. We find support for the view that medium-sized and diversified companies win the most from trade agreements. Besides speaking to the literature on the distributional effects of trade agreements, the article contributes to recent research on the role of firms in the international political economy and the stock market consequences of political events. It also presents a novel approach to measuring progress and stagnation in international trade negotiations using computational text analysis. |
| first_indexed | 2024-03-09T14:11:33Z |
| format | Article |
| id | doaj.art-2958185a9a3b49118f49f9670594620b |
| institution | Directory Open Access Journal |
| issn | 2183-2463 |
| language | English |
| last_indexed | 2024-03-09T14:11:33Z |
| publishDate | 2023-11-01 |
| publisher | Cogitatio |
| record_format | Article |
| series | Politics and Governance |
| spelling | doaj.art-2958185a9a3b49118f49f9670594620b2023-11-29T09:52:39ZengCogitatioPolitics and Governance2183-24632023-11-0111420021110.17645/pag.v11i4.71463292Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIPAndreas Dür0Lisa Lechner1Department of Political Science, University of Salzburg, AustriaDepartment of Political Science, University of Innsbruck, AustriaWhich companies gain and which companies lose from trade agreements? In contrast to a view that sees the largest companies as the main beneficiaries of trade agreements, we argue that medium-sized companies gain the most from them. Moreover, we examine whether more capital-intensive and more diversified companies benefit more than other firms. Our empirical test relies on a dataset with daily firm-level stock price data for close to 4,000 US companies over the period 2009–2016. Concretely, we assess how the shares of different types of firms reacted to the news on the (lack of) progress of the negotiations aimed at concluding the TPP and TTIP. We find support for the view that medium-sized and diversified companies win the most from trade agreements. Besides speaking to the literature on the distributional effects of trade agreements, the article contributes to recent research on the role of firms in the international political economy and the stock market consequences of political events. It also presents a novel approach to measuring progress and stagnation in international trade negotiations using computational text analysis.https://www.cogitatiopress.com/politicsandgovernance/article/view/7146distributional effectsstock marketstrade agreementstppttip |
| spellingShingle | Andreas Dür Lisa Lechner Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP Politics and Governance distributional effects stock markets trade agreements tpp ttip |
| title | Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP |
| title_full | Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP |
| title_fullStr | Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP |
| title_full_unstemmed | Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP |
| title_short | Winners and Losers From Trade Agreements: Stock Market Reactions to TPP and TTIP |
| title_sort | winners and losers from trade agreements stock market reactions to tpp and ttip |
| topic | distributional effects stock markets trade agreements tpp ttip |
| url | https://www.cogitatiopress.com/politicsandgovernance/article/view/7146 |
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