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International Trade and Productivity Growth

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Author Info

  • Ehsan U. Choudhri
  • Dalia Hakura

Abstract

The paper estimates an empirical relation based on Krugman’s ‘technological gap’ model to explore the influence of the pattern of international trade and production on the overall productivity growth of a developing country. A key result is that increased import competition in medium-growth (but not in low- or high-growth) manufacturing sectors enhances overall productivity growth. The authors also find that a production-share weighted average of (technological leaders’) sectoral productivity growth rates has a significant effect on the rate of aggregate productivity growth.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 00/17.

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Length: 24
Date of creation: 01 Jan 2000
Date of revision:
Handle: RePEc:imf:imfwpa:00/17

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Related research

Keywords: Developing countries; Economic models; growth rates; international trade; growth rate; transfer of technology; sectoral growth rates; trade variables; export ratios; import competition; trade liberalization; increased openness; industry trade; trade data; free trade; factor shares; comparative disadvantage; trade effects; trade flows; gdp per capita; tariff data; metal products; import restrictions; export ratio; trade effect; open economies; total factor productivity; aggregate imports; world trade; changes in trade; increased trade; domestic production;

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Citations

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Cited by:
  1. Azim M. Sadikov & Hans P. Lankes & Dustin Smith & Katrin Elborgh-Woytek & Jean-Jacques Hallaert, 2006. "Fiscal Implications of Multilateral Tariff Cuts," IMF Working Papers 06/203, International Monetary Fund.
  2. Vidya Mahambare & V. N. Balasubramanyam, 2005. "Trade Liberalisation and India’s Manufacturing Sector," Development and Comp Systems 0505010, EconWPA.
  3. Willem Thorbecke & Mario Lamberte & Ginalyn Komoto, 2010. "Promoting Learning and Industrial Upgrading in ASEAN Countries," Macroeconomics Working Papers 23287, East Asian Bureau of Economic Research.
  4. Julia Woerz, 2004. "Skill Intensity in Foreign Trade and Economic Growth," Tinbergen Institute Discussion Papers 04-059/2, Tinbergen Institute.
  5. Managi, Shunsuke & Kumar, Surender, 2009. "Trade-induced technological change: Analyzing economic and environmental outcomes," Economic Modelling, Elsevier, Elsevier, vol. 26(3), pages 721-732, May.
  6. Ang, James, 2009. "CO2 Emissions, Research and Technology Transfer in China," MPRA Paper 13261, University Library of Munich, Germany.
  7. Katrin Elborgh-Woytek, 2003. "Of Openess and Distance," IMF Working Papers 03/207, International Monetary Fund.
  8. Xiaolan Fu, 2004. "Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries," ESRC Centre for Business Research - Working Papers, ESRC Centre for Business Research wp278, ESRC Centre for Business Research.
  9. Allan D. Brunner, 2003. "The Long-Run Effects of Tradeon Income and Income Growth," IMF Working Papers 03/37, International Monetary Fund.

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