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Trade and Sectoral Productivity

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Author Info
Fadinger, Harald
Fleiss, Pablo

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Abstract

Even though differences in sectoral total factor productivity are at the heart of Ricardian trade theory and many models of growth and development, very little is known about their size and their form. In this paper we try to fill this gap by using a Hybrid-Ricardo-Heckscher-Ohlin trade model and bilateral sectoral trade data to overcome the data problem that has limited previous studies, which have used input and output data to back out productivities, to a small number of OECD economies. We provide a comparable set of sectoral productivities for 24 manufacturing sectors and more than sixty countries at all stages of development. Our results show that TFP differences in manufacturing sectors between rich and poor countries are substantial and far more pronounced in skill and R\&D intensive sectors. We also apply our productivity estimates to test theories on development that have implications for the patterns of sectoral productivities across countries.

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File URL: http://mpra.ub.uni-muenchen.de/6938/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6938.

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Date of creation: Jan 2008
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Handle: RePEc:pra:mprapa:6938

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Related research
Keywords: Sectoral Productivity Differences Trade and Production Data Ricardo Heckscher-Ohlin Comparative Advantage.

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Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Huasheng Song & Hylke Vandenbussche, 2008. "Trade Policy and Innovation," LICOS Discussion Papers 20008, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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