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Trade Reform Dynamics and Technical Efficiency: The Peruvian Experience

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  • Alam, Ila M Semenick
  • Morrison, Andrew R

Abstract

Markets around the world are becoming more competitive because of changing operating and regulatory environments. One such change--the loosening of trade restrictions--is a macroeconomic policy shift that should have a microeconomic impact on industrial efficiency. Specifically, competitive pressure should discipline or eliminate inefficient producers. This article explores whether or not there is such a dynamic link. It uses a previously unexploited data set to gauge the impact of the 1990 Peruvian reform on plant-level technical efficiency. The results support the argument that the degree of protection and the level of efficiency are inversely related. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Alam, Ila M Semenick & Morrison, Andrew R, 2000. "Trade Reform Dynamics and Technical Efficiency: The Peruvian Experience," World Bank Economic Review, World Bank Group, vol. 14(2), pages 309-330, May.
  • Handle: RePEc:oup:wbecrv:v:14:y:2000:i:2:p:309-30
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    6. Mark J. Roberts & James R. Tybout, 1991. "Size Rationalization and Trade Exposure in Developing Countries," NBER Chapters,in: Empirical Studies of Commercial Policy, pages 169-200 National Bureau of Economic Research, Inc.
    7. Page, John M, Jr, 1980. "Technical Efficiency and Economic Performance: Some Evidence from Ghana," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 319-339, July.
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    12. Havrylyshyn, Oli, 1990. "Trade Policy and Productivity Gains in Developing Countries: A Survey of the Literature," World Bank Research Observer, World Bank Group, vol. 5(1), pages 1-24, January.
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    14. Alam, Ila M Semenick & Sickles, Robin C, 2000. "Time Series Analysis of Deregulatory Dynamics and Technical Efficiency: The Case of the U.S. Airline Industry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 203-218, February.
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    Cited by:

    1. Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.
    2. Tóth, József & Gál, Péter, 2014. "Is the New Wine World more efficient? Factors influencing technical efficiency of wine production," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 0(Number 2), pages 1-5, August.
    3. Barine Michael Nwidobie, 2014. "Growth in Nigeria’s Non-Oil Export Finance and Non-Oil Export Performance: A Correlational Analysis," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(2), pages 31-39, February.
    4. Deb Kusum Das, 2007. "Trade Liberalization and Industrial Productivity: An Assessment of Developing Country Experiences," Working Papers id:1009, eSocialSciences.
    5. repec:khe:scajes:v:4:y:2018:i:2:p:71-82 is not listed on IDEAS
    6. Rim BEN AYED MOUELHI, 2007. "The Impact Of Trade Liberalization On Tunisian Manufacturing: Structure, Performance And Employment," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 87-114.

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