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Abstract

In this paper we use the gravity model to study the effects of tariff on U.S. exports and imports of paper products that include paper, paperboard, and wood pulp. The results show that an increase in tariff would have a small, significant, and asymmetric impact on U.S. exports and imports of paper products. Furthermore, exchange rate, economic size of the U.S. and its trade partners, and U.S. internet use rate are found to be significant factors influencing U.S. paper products trade. These results show that the U.S. has some leverage in promoting free trade in paper products.

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