Reassessing the Productivity Gains from Trade Liberalization
Title | Reassessing the Productivity Gains from Trade Liberalization PDF eBook |
Author | Mr.JaeBin Ahn |
Publisher | International Monetary Fund |
Pages | 31 |
Release | 2016-03-23 |
Genre | Business & Economics |
ISBN | 1475546777 |
This paper reassesses the impact of trade liberalization on productivity. We build a new, unique database of effective tariff rates at the country-industry level for a broad range of countries over the past two decades. We then explore both the direct effect of liberalization in the sector considered, as well as its indirect impact in downstream industries via input linkages. Our findings point to a dominant role of the indirect input market channel in fostering productivity gains. A 1 percentage point decline in input tariffs is estimated to increase total factor productivity by about 2 percent in the sector considered. For advanced economies, the implied potential productivity gains from fully eliminating remaining tariffs are estimated at around 1 percent, on average, which do not factor in the presumably larger gains from removing existing non-tariff barriers. Finally, we find strong evidence of complementarities between trade and FDI liberalization in boosting productivity. This calls for a broad liberalization agenda that cuts across different areas.
Reassessing the Productivity Gains from Trade Liberalization
Title | Reassessing the Productivity Gains from Trade Liberalization PDF eBook |
Author | Mr.JaeBin Ahn |
Publisher | International Monetary Fund |
Pages | 31 |
Release | 2016-08-16 |
Genre | Business & Economics |
ISBN | 1475525311 |
This paper reassesses the impact of trade liberalization on productivity. We build a new, unique database of effective tariff rates at the country-industry level for a broad range of countries over the past two decades. We then explore both the direct effect of liberalization in the sector considered, as well as its indirect impact in downstream industries via input linkages. Our findings point to a dominant role of the indirect input market channel in fostering productivity gains. A 1 percentage point decline in input tariffs is estimated to increase total factor productivity by about 2 percent in the sector considered. For advanced economies, the implied potential productivity gains from fully eliminating remaining tariffs are estimated at around 1 percent, on average, which do not factor in the presumably larger gains from removing existing non-tariff barriers. Finally, we find strong evidence of complementarities between trade and FDI liberalization in boosting productivity. This calls for a broad liberalization agenda that cuts across different areas.
The Expected Benefits of Trade Liberalization for World Income and Development
Title | The Expected Benefits of Trade Liberalization for World Income and Development PDF eBook |
Author | Antoine Bouët |
Publisher | Intl Food Policy Res Inst |
Pages | 176 |
Release | 2008-01-01 |
Genre | Political Science |
ISBN | 0896295109 |
Development experts often promote trade liberalization as a path to economic development and poverty alleviation. This study examines the trade models used to support such claims. The author surveys the methodologies used to assess trade liberalization’s impact and examines the extent to which assessments of impact diverge. Through careful analysis of models and their results, the author provides a more nuanced assessment of the liberalization’s possible benefits
The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies
Title | The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies PDF eBook |
Author | Berhanu Abegaz |
Publisher | |
Pages | |
Release | 2010 |
Genre | |
ISBN |
Trade Liberalization
Title | Trade Liberalization PDF eBook |
Author | Romain Wacziarg |
Publisher | Edward Elgar Publishing |
Pages | 0 |
Release | 2018 |
Genre | Free trade |
ISBN | 9781788111492 |
This compelling two-volume collection presents the major literary contributions to the economic analysis of the consequences of trade liberalization on growth, productivity, labor market outcomes and economic inequality. Examining the classical theories that stress gains from trade stemming from comparative advantage, the selection also comprises more recent theories of imperfect competition, where any potential gains from trade can stem from competitive effects or the international transmission of knowledge. Empirical contributions provide evidence regarding the explanatory power of these various theories, including work on the effects of trade openness on economic growth, wages, and income inequality, as well as evidence on the effects of trade on firm productivity, entry and exit. Prefaced by an original introduction from the editor, the collection will to be an invaluable research resource for academics, practitioners and those drawn to this fascinating topic.
Trade Liberalization and Productivity Growth
Title | Trade Liberalization and Productivity Growth PDF eBook |
Author | Satish Chand |
Publisher | |
Pages | 31 |
Release | 1996 |
Genre | Factors of production |
ISBN | 9780947076740 |
Trade Liberalization and Productivity Growth
Title | Trade Liberalization and Productivity Growth PDF eBook |
Author | Peter Gustafsson |
Publisher | |
Pages | 34 |
Release | 2006 |
Genre | Free trade |
ISBN |