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 |
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 |
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.
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.
Does Freer Trade Really Lead to Productivity Growth?
Title | Does Freer Trade Really Lead to Productivity Growth? PDF eBook |
Author | Lauren Bresnahan |
Publisher | Intl Food Policy Res Inst |
Pages | 28 |
Release | 2013-04-17 |
Genre | Social Science |
ISBN |
Manufacturing is intensive in the use of reproducible factors and exhibits greater technological dynamism than primary production. As such, its growth is central to long-run development in low-income countries. African countries are latecomers to industrialization, and barriers to manufacturing growth, including those that limit trade, have been slow to come down. What factors contribute most to increases in output and productivity growth in African manufacturing? Recent tradeindustrial organization theory suggests that trade liberalization should raise average total factor productivity (TFP) among manufacturing firms (Melitz 2003). However, these predictions are conditional on maintained assumptions about the nature of industries, factor markets, and trade patterns that may not be appropriate in a developing-country setting. Manufacturing firms are heterogeneous, so the analysis demands disaggregated data. We use firm-level data from the World Banks Regional Program on Enterprise Development, covering Ghana, Kenya, Nigeria, and Tanzania for 19912003. Among other things, the data distinguish exports by destination (Africa and the rest of the world), which is important due to the spread of intra-African regional trade agreements (RTAs). Econometric results confirm well-known relationships, such as a positive association between export intensity and TFP, which implies that more productive firms are more likely to select in to exporting. However, we also find the destination of exports to be important. Many exporters have experienced declining TFP growth rates, which have occurred at different rates depending on the country and the export destination. The evidence for learning by exporting is thus mixed. These results add a new dimension to controversies over the development implications of trade liberalization and the promotion of intra-African RTAs.
Trade Liberalization and Productivity Growth
Title | Trade Liberalization and Productivity Growth PDF eBook |
Author | Peter Gustafsson |
Publisher | |
Pages | 0 |
Release | 2010 |
Genre | |
ISBN |
This paper presents a trade model with firm-level productivity differences and R&D-driven growth. Trade liberalization causes the least productive firms to exit but also slows the development of new products. The overall effect on productivity growth depends on the size of intertemporal knowledge spillovers in R&D. When these spillovers are relatively weak, then trade liberalization promotes productivity growth in the short run and makes consumers better off in the long run. However, when these spillovers are relatively strong, then trade liberalization retards productivity growth in the short run and makes consumers worse off in the long run.
Innovation Policy and the Economy
Title | Innovation Policy and the Economy PDF eBook |
Author | Adam B. Jaffe |
Publisher | |
Pages | |
Release | 2001 |
Genre | Diffusion of innovations |
ISBN |