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Productivity and Manufacture Export Causality among World Regions: 1989-1999

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  • Li, Kui-Wai
  • Bender, Seigfried

Abstract

This paper examines the causality relationships between manufacturing exports and productivity for five industry groups and six world regions for the period 1989-1999. Productivity is estimated by using value-added figures, and manufacture export data are adjusted by the revealed comparative advantage index. The causality tests between export and factor productivity concluded that the more industrialized European economies are more export-driven than productivity-driven than the other less industrialized European economies. East Asia economies showed improvements in both export and productivity, and the United States had an advantage in productivity and a balance growth in trade. The export performance of countries in South Asia and South East Asia were average, though their productivity has improved. Latin American countries are still in the exporting stage.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36420.

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Date of creation: Jul 2007
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Publication status: Published in International Trade Journal 21.2(2007): pp. 121-159
Handle: RePEc:pra:mprapa:36420

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Keywords: Total factor productivity; revealed comparative advantage; causality;

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  1. Carolan, Terrie & Singh, Nirvikar & Talati, Cyrus, 1998. "The composition of U.S.-East Asia trade and changing comparative advantage," Journal of Development Economics, Elsevier, vol. 57(2), pages 361-389.
  2. Axel Dreher, 2002. "Does Globalization Affect Growth?," Development and Comp Systems 0210004, EconWPA, revised 04 Feb 2003.
  3. Pedro Cavalcanti Ferreira & JosÈ Luiz Rossi, 2003. "New Evidence from Brazil on Trade Liberalization and Productivity Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(4), pages 1383-1405, November.
  4. Keld Laursen, 1998. "Do Export and Technological Specialisation Patterns Co-evolve in Terms of Convergence or Divergence? Evidence From 19 OECD Countries, 1971-1991," DRUID Working Papers 98-18, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  5. Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
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