Giorgio Barba Navaretti (University of Milano and Centro Studi Luca d’Agliano) Ricardo Faini (University of Milano and Centro Studi Luca d’Agliano) Bernard Gauthier () (IEA, HEC Montréal)
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This paper examines the impact of the devaluation of the CFA franc in 1994 and of trade and fiscal reforms on enterprise development in Chad and Gabon. These reforms provide a natural experiment to assess the impact of trade liberalisation in countries with a small and backward manufacturing sector. The empirical analysis is based on a new panel data base covering almost the total population of manufacturing firms in Chad and Gabon, and containing data spanning from the year before to two years after t he reforms. The paper finds that although firms’ response to changing incentives was non-negligible, with a shift of output from non tradables to tradables 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.
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Paper provided by HEC Montréal, Institut d'économie appliquée in its series Cahiers de recherche with number
02-05.
Length: 21 pages Date of creation: May 2002 Date of revision: Handle: RePEc:iea:carech:0205
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Find related papers by JEL classification: 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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