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Trade liberalization and inter-industry productivity spillovers: a dynamic spatial panel approach

Author

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  • Lourenco S. Paz

    (Syracuse University)

Abstract

The use of trade liberalization to enhance manufacturing productivity has been a commonly applied policy in several developing countries since the 1980s. This paper proposes a new methodology to estimate the inter-industry productivity spillovers that may occur in such reforms. The findings from a study of the Brazilian trade liberalization episode (1989-1998) indicate that inter-industry productivity spillovers exist, are positive, and account for 70% of the increase in productivity that results from a reduction in import tariffs.

Suggested Citation

  • Lourenco S. Paz, 2013. "Trade liberalization and inter-industry productivity spillovers: a dynamic spatial panel approach," Economics Bulletin, AccessEcon, vol. 33(3), pages 2379-2393.
    • Handle: RePEc:ebl:ecbull:eb-13-00338
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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I3-P222.pdf
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    References listed on IDEAS

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    Cited by:

    1. Louren�o S. Paz, 2014. "Inter-industry Productivity Spillovers: An Analysis Using the 1989-1998 Brazilian Trade Liberalisation," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1261-1274, September.

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    More about this item

    Keywords

    productivity; spatial panel econometrics; spillovers; trade liberalization; Brazil; Input-Output matrix;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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