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Assessing the Trade-Related Sources of Productivity Growth in Emerging Economies

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  • Przemyslaw Kowalski
  • Max Büge

Abstract

This paper contributes new empirical evidence on the relationship between productivity and international trade. This is accomplished using an econometric approach that combines input-output and productivity data, which allows a more detailed tracking of the relationship between trade in intermediate and final products and productivity in countries at different stages of economic development. The results show that various forms of trade integration strongly support productivity in emerging economies. Exporting final products, importing intermediates for domestic production and re-exporting are all associated with higher productivity levels, pointing to the particular importance for this country grouping of being able to integrate into regional and global value chains. Our results emphasise also important linkages between different economic sectors and call for broad-based approaches to facilitating integration with foreign intermediate inputs and final products markets.

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File URL: http://dx.doi.org/10.1787/5k437p82nxq1-en
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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Trade Policy Papers with number 158.

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Date of creation: 30 Jul 2013
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Handle: RePEc:oec:traaab:158-en

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Related research

Keywords: international trade; productivity; developing economies; global value chains; emerging economies; intermediate imports;

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