Growth effects of anticipated trade liberalization and the Baldwin multiplier

According to Baldwin (1992) [Baldwin, R.E., 1992. Measurable dynamic gains from trade. Journal of Political Economy 100, 162–174] trade liberalization induces a medium-run investment-led growth process. This note points out that Baldwinʹs own model would actually predict a significant initial drop in investment and aggregate income, when announcement effects are taken into account.