Testing the Linkages between Trade and Productivity Growth
AbstractThe authors examine the effect of trade on productivity growth using data from nine manufacturing industries across 12 OECD countries over the period 1978-97. Because causality between productivity growth and trade share runs both ways, geographical characteristics of countries are used to instrument for average bilateral trade volumes over the 20-year period. In addition, to exploit the time-series nature of the data, the authors construct a panel dataset and employ dynamic panel data techniques. After controlling for industry-specific heterogeneity, the results indicate that increased exposure to trade, in particular higher import volumes, exerts a positive influence on industries' productivity growth. However, the effect is rather small. Copyright � 2008 The Authors. Journal compilation � 2008 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of Development Economics.
Volume (Year): 12 (2008)
Issue (Month): 4 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669
Other versions of this item:
- C. Economidou & Antu Panini Murshid, 2007. "Testing the linkages between trad and productivity growth," Working Papers 07-22, Utrecht School of Economics.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
- Berhanu Abegaz & Arnab K. Basu, 2011.
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Emerging Markets Finance and Trade,
M.E. Sharpe, Inc., vol. 47(1), pages 5-27, January.
- Abegaz, Berhanu & Basu, Arnab K., 2010. "The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies," Discussion Papers 94717, University of Bonn, Center for Development Research (ZEF).
- Bergman, Karin, 2011. "Productivity Effects of Privately and Publicly Funded R&D," Working Papers 2011:28, Lund University, Department of Economics.
- Muhammad, Shahbaz, 2012.
"Does Trade Openness Affect Long Run Growth? Cointegration, Causality and Forecast Error Variance Decomposition Tests for Pakistan,"
37391, University Library of Munich, Germany, revised 10 Mar 2012.
- Shahbaz, Muhammad, 2012. "Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan," Economic Modelling, Elsevier, vol. 29(6), pages 2325-2339.
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