Measuring the TFP Costs of Barriers to Trade
AbstractWe perform development decompositions measuring the effect of trade restrictions on TFP and labor productivity. An economy with two tradable and non-storable intermediate goods, used in the production of a non-tradable final good, is assumed. The solution of the static trade and factor allocation problem generates a mapping between factor endowments and final output, which is then used in our exercises. For middle income economies with high tariff rates, the effects of trade restrictions are significant; in some cases, enough to attribute to protectionism one third of their TFP disadvantage. The impact on GDP per worker is also relevant
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number 644.
Date of creation: 03 Dec 2006
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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cross-country TFP differences; protectionism;
Find related papers by JEL classification:
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- F1 - International Economics - - Trade
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- Gonzalez, German Hector & Delbianco, Fernando Andres, 2010.
"Apertura y Productividad Total de los Factores: Análisis de la contemporaneidad en los quiebres estructurales para América Latina y el Caribe
[Openness and Total Factor Productivity: Test of Temp," MPRA Paper 26029, University Library of Munich, Germany.
- German Hector Gonzalez & Fernando Andres Delbianco, 2011. "Apertura y productividad total de los factores: análisis de la contemporaneidad en los quiebres estructurales para América Latina y el Caribe," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 26(1), pages 53-81, Junio.
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