Trade Liberalization and Productivity Growth in Latin American Manufacturing, 1970-98

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Trade Liberalization and Productivity Growth in Latin American Manufacturing, 1970-98

Author Info

EVA PAUS
NOLA REINHARDT
MICHAEL ROBINSON

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Michael Dale Robinson

Abstract

We examine the relationship between trade liberalization and manufacturing labor productivity growth for 27 industries in seven Latin American countries from 1970 to 1998. Our trade variables are export and import growth and a commercial reform index, which capture the various channels through which productivity and trade liberalization may be related. Using the Arellano-Bond GMM estimator, we find a significant positive correlation between all three variables and productivity growth. US productivity growth and distance behind best-practice technology are also significantly correlated with productivity growth. These results have to be understood in the context of sweeping economic reforms and continuing economic difficulties in the countries under investigation.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The Journal of Policy Reform.

Volume (Year): 6 (2003)
Issue (Month): 1 (March)
Pages: 1-15
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Handle: RePEc:taf:jpolrf:v:6:y:2003:i:1:p:1-15

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Article
- Eva Paus & Nola Reinhardt & Michael Robinson, 2003. "Trade liberalization and productivity growth in latin american manufacturing, 1970-98," Journal of Policy Reform, Taylor and Francis Journals, vol. 6(2), pages 127-127, June. [Downloadable!] (restricted)

References listed on IDEAS
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.:

Bonelli, Regis, 1992. "Growth and productivity in Brazilian industries : Impacts of trade orientation," Journal of Development Economics, Elsevier, vol. 39(1), pages 85-109, July. [Downloadable!] (restricted)
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Other versions:
- Tybout, James & de Melo, Jaime & Corbo, Vittorio, 1990. "The effects of trade reforms on scale and technical efficiency : new evidence from Chile," Policy Research Working Paper Series 481, The World Bank. [Downloadable!]
Reinhardt, Nola & Peres, Wilson, 2000. "Latin America's New Economic Model: Micro Responses and Economic Restructuring," World Development, Elsevier, vol. 28(9), pages 1543-1566, September. [Downloadable!] (restricted)
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Other versions:
- Rodríguez, Francisco & Rodrik, Dani, 1999. "Trade Policy and Economic Growth: A Sceptic's Guide to the Cross-National Evidence," CEPR Discussion Papers 2143, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Francisco Rodriguez & Dani Rodrik, 2001. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 261-338 National Bureau of Economic Research, Inc. [Downloadable!]
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Other versions:
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Nishimizu, Mieko & Robinson, Sherman, 1984. "Trade policies and productivity change in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 16(1-2), pages 177-206. [Downloadable!] (restricted)
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Other versions:
- Pavcnik, Nina, 2002. "Trade Liberalization, Exit, and Productivity Improvement: Evidence from Chilean Plants," Review of Economic Studies, Blackwell Publishing, vol. 69(1), pages 245-76, January.
Peres, Wilson & Stumpo, Giovanni, 2000. "Small and Medium-Sized Manufacturing Enterprises in Latin America and the Caribbean Under the New Economic Model," World Development, Elsevier, vol. 28(9), pages 1643-1655, September. [Downloadable!] (restricted)
Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "learning-by-exporting" important? Micro-dynamic evidence from Colombia, Mexico and Morocco," Finance and Economics Discussion Series 96-30, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
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Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August. [Downloadable!] (restricted)
Macario, Carla, 2000. "The Behavior of Manufacturing Firms Under the New Economic Model," World Development, Elsevier, vol. 28(9), pages 1597-1610, September. [Downloadable!] (restricted)
Alcorta, Ludovico, 2000. "New Economic Policies and the Diffusion of Machine Tools in Latin America," World Development, Elsevier, vol. 28(9), pages 1657-1672, September. [Downloadable!] (restricted)

Full references

Cited by:
(explanations, 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.)

Rajagopal, 2005. "Where Did the Trade Liberalization Drive Latin American Economy: A Cross Section Analysis," Econometrics 0504003, EconWPA. [Downloadable!]
Other versions:
- Rajagopal, 2006. "Where Did the Trade Liberalization Drive Latin American Economy: A Cross Section Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(2). [Downloadable!] (restricted)

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