The elusive productivity effect of trade liberalization in the manufacturing industries of emerging economies

Emerging Markets Finance and Trade

Volumn 47, Issue 1, 2011, Pages 5-27

  Abegaz, Berhanu ^a   Basu, Arnab ^a  

^a Dept of Economics and Thomas Jefferson Program in Public Policy at the College of William and Mary   (United States)

Author keywords

liberalization; manufacturing; markup; scale economies; total factor productivity (TFP)

Indexed keywords

EID: 79551586944     PISSN: 1540496X     EISSN: None     Source Type: Journal    
DOI: 10.2753/REE1540-496X470101     Document Type: Article

References (56)

1. Abegaz, B. 2002. "Structural Convergence in Manufacturing Industries Between Leaders and Latecomers."Journal of Development Studies 38, no. 4: 69-99.
2. Aghion, P., and P. Howitt (2009). The Economics of Growth. Cambridge: MIT Press.
3. Amsden, A. 2001. The Rise of "the Rest: Challenges to the West from Late-Industrializing Economies. New York: Oxford University Press.
4. Anderson, K. 1980. "The Political Market for Government Assistance to Australian Manufacturing Industries."Economic Record 56, no. 153: 132-144.
5. Baldwin, R. 2003. "Openness and Growth: What Is the Empirical Relationship?"Working Paper no. 9578, National Bureau of Economic Research, Cambridge, MA.
6. Chand, S., and K. Sen. 2002. "Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing."Review of Development Economics 6, no. 1: 120-132.
7. Dodzin, S., and A. Vamvakidis. 2004. "Trade and Industrialization in Developing Economies."Journal of Development Economics 75, no. 1: 319-328.
8. Domowitz, I.; R. Hubbard; and B. Peterson. 1988. "Market Structure and Cyclical Fluctuations in U.S. Manufacturing."Review of Economics and Statistics 70, no. 1: 35-66.
9. Economidou, C., and A. Murshid. 2008. "Testing the Linkages Between Trade and Productivity Growth."Review of Development Economics 12, no. 4: 845-860.
10. Edwards, S. 1998. "Openness, Productivity and Growth: What Do We Really Know?"Economic Journal 108, no. 447: 383-398.
11. Erdem, E., and J. Tybout. 2003. "Trade Policy and Industrial Sector Responses: Using Evolutionary Models to Interpret the Evidence."Working Paper no. 9947, National Bureau of Economic Research, Cambridge, MA.
12. Fernandes, A. 2007. "Trade Policy, Trade Volumes and Plant-Level Productivity in Colombian Manufacturing Industries."Journal of International Economics 71, no. 1: 52-71.
13. Finger, J., and A. Harrison. 1994. "The MFA Paradox: More Protection and More Trade."Working Paper no. 4751, National Bureau of Economic Research, Cambridge, MA.
14. Greenaway, D.; W. Morgan; and P. Wright. 2002. "Trade Liberalisation and Growth in Developing Countries."Journal of Development Economics 67, no. 1: 229-244.
15. Greene, W. 2004. Econometric Analysis. New York: Macmillan.
16. Grossman, G., and E. Helpman. 1990. "Trade, Innovation and Growth."American Economic Review, Papers& Proceedings 70, no. 2: 86-91.
17. Hall, R. 1988. "The Relation Between Price and Marginal Cost in U.S. Industry."Journal of Political Economy 96, no. 5: 921-947.
18. Harrison, A. 1994. "Productivity, Imperfect Competition and Trade Reform: Theory and Evidence."Journal of International Economics 36, nos. 1-2: 53-73.
19. Hay, D. 2001. "The Post-1990 Brazilian Trade Liberalisation and the Performance of Large Manufacturing Firms: Productivity, Market Share and Profits."Economic Journal 111, no. 473: 620-641.
20. Helpman, E. 2006. "Trade, FDI, and the Organization of Firms."Journal of Economic Literature, 44, no. 3: 589-630.
21. Hoff, K., and J. Stiglitz. 2001. "Modern Economic Theory and Development."In Pioneers in Development, ed. G. Meier and J. Stiglitz, pp. 389-459. Oxford: Oxford University Press.
22. Isaksson, A. 2007. "World Productivity Database: A Technical Description."Staff Working Paper no. 10/2007, United Nations Industrial Organization, Vienna.
23. Iscan, T. 1998. "Trade Liberalisation and Productivity: A Panel Study of the Mexican Manufacturing Industry."Journal of Development Studies 34, no. 5: 123-148.
24. Jonsson, G., and A. Subramanian. 2001. "Dynamic Gains from Trade: Evidence from South Africa."IMF Staff Papers 48, no. 1: 197-224.
25. Keller, W. 2004. "International Technology Diffusion."Journal of Economic Literature 42, no. 3: 752-782.
26. Kim, E. 2000. "Trade Liberalization and Productivity Growth in Korean Manufacturing Industries: Price Protection, Market Power, and Scale Efficiency."Journal of Development Economics 62, no. 1: 55-83.
27. Krishna, P., and D. Mitra. 1998. "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence from India."Journal of Development Economics 56, no. 2: 447-462.
28. Lee, H.; L. Ricci; and R. Rigobon. 2004. "Once Again, Is Openness Good for Growth?"Journal of Development Economics 75, no. 2: 451-472.
29. Lee, J.-W., and P. Swagel. 1997. "Trade Barriers and Trade Flows Across Countries and Industries."Review of Economics and Statistics 79, no. 3: 372-382.
30. Levinsohn, J. 1993. "Testing the Imports-as-Market-Discipline Hypothesis."Journal of International Economics 35, nos. 1-2: 1-22.
31. Levinsohn, J., and A. Petrin. 2003. "Estimating Production Functions Using Inputs to Control for Unobservables."Review of Economic Studies 70, no. 2: 317-342.
32. Lopez, R. 2005. "Trade and Growth: Reconciling the Macroeconomic and Microeconomic Evidence."Journal of Economic Surveys 19, no. 4: 623-648.
33. Mahadevan, R. 2007. "New Evidence on Export-Led Growth Nexus: A Case Study of Malaysia."World Economy 30, no. 7: 1069-1083.
34. Meinen, G.; P. Verbiest; and P.-P. de Wolf. 1998. "Perpetual Inventory Method: Service Lives, Discard Patterns and Depreciation Methods."Statistics Netherlands, Voorburg/Heerlen.
35. Miller, S., and M. Upadhyay. 2000. "The Effects of Openness, Trade Orientation and Human Capital on Total Factor Productivity."Journal of Development Economics 63, no. 2: 399-423.
36. Milner, C.; D. Vencappa; and P. Wright. 2007. "Trade Policy and Productivity Growth in Indian Manufacturing."World Economy 30, no. 2: 249-266.
37. Moreira, M., and P. Correa. 1998. "A First Look at the Impacts of Trade Liberalization on Brazilian Manufacturing Industry."World Development 26, no. 10: 1859-1874.
38. Nicita, A., and M. Olarreaga. 2006. "Trade and Production, 1976-2004."World Bank, Washington, DC, October.
39. Noland, M., and H. Pack. 2003. Industrial Policy in an Era of Globalization: Lessons from Asia. Washington, DC: Institute for International Economics.
40. Pavcnik, N. 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants."Review of Economic Studies 69, no. 1: 245-276.
41. Rodgriguez, F., and D. Rodrik. 2000. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence."NBER Macroeconomics Annual 15: 261-325.
42. Rodrik, D. 1992. "Closing the Productivity Gap: Does Trade Liberalization Really Help?"In Trade Policy, Industrialization, and Development: New Perspectives, ed. G. Helleiner, pp. 155-175. Oxford: Clarendon Press.
43. Sachs, J., and A. Warner. 1995. "Economic Reform and the Process of Global Integration."Brookings Papers on Economic Activity 1: 1-95.
44. -1997. "Natural Resource Abundance and Economic Growth."Center for International Development and Harvard Institute for International Development, Harvard University, Cambridge, MA.
45. Schor, A. 2004. "Heterogeneous Productivity Response to Tariff Reduction: Evidence from Brazilian Manufacturing Firms."Journal of Development Economics 75, no. 2: 373-396.
46. Solow, R. 1957. "Technical Change and Aggregate Production Function."Review of Economics and Statistics 39, no. 3: 312-320.
47. Stiglitz, J. 2004. "Globalization and Growth in Emerging Markets."Journal of Policy Modeling 26, no. 4: 465-484.
48. Togan, S. 1997. "Opening up the Turkish Economy in the Context of the Customs Union with EU."Journal of Economic Integration 12, no. 2: 157-179.
49. Trefler, D. 1993. "Trade Liberalization and the Theory of Endogenous Protection."Journal of Political Economy 101, no. 1: 138-160.
50. Tybout, J. 2000. "Manufacturing Firms on Developing Countries: How Well Do They Do and Why?"Journal of Economic Literature 38, no. 1: 11-44.
51. Tybout, J., and D. Westbrook. 1995. "Trade Liberalization and the Dimensions of Efficiency Change in Mexican Manufacturing Industries. "Journal of International Economics 39, nos. 1-2: 53-78.
52. Tybout, J.; J. de Melo; and V. Corbo. 1991. "The Effects of Trade Reforms on Scale and Technical Efficiency: New Evidence from Chile."Journal of International Economics 31, nos. 3-4: 2311-2351.
53. United Nations Industrial Development Organization. 2002. Industrial Development Report. Vienna: United Nations Press.
54. Wacziarg, R., and K.H. Welch. 2008. "Trade Liberalization and Growth: New Evidence."World Bank Economic Review 22, no. 2: 187-231.
55. Wagner, J. 2007. "Exports and Productivity: A Survey of the Evidence from Firm-Level Data."World Economy 30, no. 1: 60-82.
56. World Bank. 2003. World Development Indicators. Washington, DC.