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Dynamic Gains From Trade: Evidence From South Africa

Author

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  • Mr. Arvind Subramanian
  • Mr. Gunnar Jonsson

Abstract

This paper examines the empirical relationship between trade and total factor productivity (TFP) in South Africa. It uses (i) a time series approach where trade is defined in terms of aggregate outcomes, i.e., as the share of imports plus exports in GDP, and (ii) a cross sectional approach, where trade is defined in terms of trade policy, i.e., as actual trade protection across different manufacturing sectors. The results indicate that there is a significant positive relationship between trade and TFP growth both over time and across sectors.

Suggested Citation

  • Mr. Arvind Subramanian & Mr. Gunnar Jonsson, 2000. "Dynamic Gains From Trade: Evidence From South Africa," IMF Working Papers 2000/045, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/045
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    Keywords

    WP; TFP growth; tariff; trade; Openness; trade liberalization; growth; total factor productivity; tariff regime; TFP series; import tariff; trade policy orientation; tariff reduction; tariff line; time series; formula duty; trade policy variable; Tariffs; Trade policy; Imports; Africa;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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