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Trade integration and within-plant productivity evolution in Chile

Author

Listed:
  • Maria Bas

    (Paris School of Economics and CEPII (Centre d’Etudes Prospectives et d’Informations Internationales))

  • Ivan Ledezma

    (Paris School of Economics and Université Paris-Dauphine LEDa-DIAL)

Abstract

We analyze the impact of trade integration on plant TFP using Chilean plant-level data (1982–1999) and 3-digit bilateral trade flows. Our contribution is to disentangle the impact of export and import barriers, estimated as border effects within a multilateral context. A fall in export barriers is positively correlated with plant productivity in traded sectors. The reduction of import barriers, however, can only be associated to productivity improvements in export-oriented sectors. In import-competing sectors a robust positive correlation shows up between plant productivity and protection. We then test several channels linking trade integration and firm productivity.

Suggested Citation

  • Maria Bas & Ivan Ledezma, 2010. "Trade integration and within-plant productivity evolution in Chile," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(1), pages 113-146, April.
    • Handle: RePEc:spr:weltar:v:146:y:2010:i:1:d:10.1007_s10290-009-0041-2
    DOI: 10.1007/s10290-009-0041-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Trade barriers; Plant productivity; Firm heterogeneity; Plant-level data;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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