The elusive productivity effect of trade liberalization in the manufacturing industries of emerging economies
The elusive productivity effect of trade liberalization in the manufacturing industries of emerging economies
View/Date of Publication
10.2010Publisher
Center for Development Research (ZEF), University of BonnPublisher Location
BonnMetadata
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Citable Link (Handle URI) 
https://hdl.handle.net/20.500.11811/12257
Abstract
Using a model that admits variable returns and imperfect competition, we investigate the impact on total factor productivity of trade liberalization in six emerging economies. Regressions based on panel data for 28 three-digit manufacturing industries show that productivity growth is insensitive to tariff reduction. These results are at variance with country-specific studies which, using firm-level data, generally find a positive association between liberalization and productivity growth. While aggregation effects may matter, our results can also be explained thusly: significant productivity gains by latecomers via technological assimilation do take time and require appropriate sequencing of reforms of trade and industrial policies.
Classification (DDC)
300 Sozialwissenschaften, Soziologie, Anthropologie 320 Politik 330 WirtschaftFirst Publication
https://www.zef.de/fileadmin/user_upload/ZEF_DP_141.pdfPart of Series
ZEF-Discussion Papers on Development Policy ; 141Abegaz, Berhanu; Basu, Arnab K.: The elusive productivity effect of trade liberalization in the manufacturing industries of emerging economies. Bonn: Center for Development Research (ZEF), University of Bonn, 2010. In: ZEF-Discussion Papers on Development Policy, 141.
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12257
Online-Ausgabe in bonndoc: https://hdl.handle.net/20.500.11811/12257
@techreport{handle:20.500.11811/12257,
author = {{Berhanu Abegaz} and {Arnab K. Basu}},
title = {The elusive productivity effect of trade liberalization in the manufacturing industries of emerging economies},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2010,
month = oct,
series = {ZEF-Discussion Papers on Development Policy},
volume = 141,
note = {Using a model that admits variable returns and imperfect competition, we investigate the impact on total factor productivity of trade liberalization in six emerging economies. Regressions based on panel data for 28 three-digit manufacturing industries show that productivity growth is insensitive to tariff reduction. These results are at variance with country-specific studies which, using firm-level data, generally find a positive association between liberalization and productivity growth. While aggregation effects may matter, our results can also be explained thusly: significant productivity gains by latecomers via technological assimilation do take time and require appropriate sequencing of reforms of trade and industrial policies.},
url = {https://hdl.handle.net/20.500.11811/12257}
}
author = {{Berhanu Abegaz} and {Arnab K. Basu}},
title = {The elusive productivity effect of trade liberalization in the manufacturing industries of emerging economies},
publisher = {Center for Development Research (ZEF), University of Bonn},
year = 2010,
month = oct,
series = {ZEF-Discussion Papers on Development Policy},
volume = 141,
note = {Using a model that admits variable returns and imperfect competition, we investigate the impact on total factor productivity of trade liberalization in six emerging economies. Regressions based on panel data for 28 three-digit manufacturing industries show that productivity growth is insensitive to tariff reduction. These results are at variance with country-specific studies which, using firm-level data, generally find a positive association between liberalization and productivity growth. While aggregation effects may matter, our results can also be explained thusly: significant productivity gains by latecomers via technological assimilation do take time and require appropriate sequencing of reforms of trade and industrial policies.},
url = {https://hdl.handle.net/20.500.11811/12257}
}
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