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Market access and the evolution of within plant productivity in Chile Author info | Abstract | Publisher info | Download info | Related research | Statistics Maria Bas
Ivan Ledezma
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This paper studies the impact of trade reforms on the evolution of plant's productivity. We use plant level panel data of Chilean’s manufacturing for the period 1979-2000. The main contribution of the paper is to construct detailed measures of trade liberalization disentangling the impact of export and import oriented policies. Firstly, we estimate the production functions to obtain factor contributions and to compute plant's TFP controlling for firm heterogeneous productivity which is unobservable and evolves over the time. Secondly, we construct a measure of market access as an outcome of trade policies by estimating the difficulties to trade (border effects) between Chile and its main trading partners at the industry level and across time using a gravity model. Finally, we estimate the impact of trade reform on plant's productivity using the border effects estimated in the previous step. We find evidence of a positive impact of export oriented policies on productivity of traded sectors relative to non traded. On the other hand, relative to the latter, the reduction of import barriers has a positive impact on productivity in export oriented sectors, but it hurts local firms in import competing ones probably due to the existence of increasing returns.
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Paper provided by PSE (Ecole normale supérieure) in its series PSE Working Papers with number
2007-09.
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Date of creation: 2007Date of revision:
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References listed on IDEAS 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.: Roberto Alvarez & Ricardo López, 2005.
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Yale School of Management Working Papers
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Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000.
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Sofronis Clerides & Saul Lach & James Tybout, 1996.
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