The Impact of Trade Liberalization on Enterprises in Small Backward Economies: the Case of Chad and Gabon
AbstractThis paper examines the impact of trade and fiscal reforms and of the 1994 devaluation of the CFA franc on enterprise development in Chad and Gabon. These reforms provide a natural experiment to assess the impact of trade liberalization in countries with a small and backward manufacturing sector. The empirical analysis is based on a new panel data base covering virtually the whole population of manufacturing firms in Chad and Gabon, and containing data spanning from the year before to two years after the reforms. The paper finds that although firms' response to changing incentives was non-negligible, with a shift of output from nontradable to tradable and an increase in productivity, the reform process was unable to generate a virtuous and self-sustained circle, where export expansion brings a generalized productivity increase which in turn feeds on further export growth. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Development Economics.
Volume (Year): 10 (2006)
Issue (Month): 3 (08)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669
Other versions of this item:
- Giorgio Barba Navaretti & Ricardo Faini & Bernard Gauthier, 2002. "The Impact of Trade Liberalisation on Enterprises in Small Backward Economies: The Case of Chad and Gabon," Cahiers de recherche 02-05, HEC Montréal, Institut d'économie appliquée.
- Giorgio Barba Navaretti & Riccardo Faini & Bernard Gauthier, 2003. "The Impact of Trade Liberalisation on Enterprises in Small Backward Economies: The Case of Chad and Gabon," Development Working Papers 176, Centro Studi Luca d\'Agliano, University of Milano.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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