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Trade liberalization and productivity growth: new evidence from the Turkish rubber industry

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  • Omer Gokcekus

Abstract

This paper empirically examines the effects of a change in foreign trade regime on productivity growth. Based on a Generalized Leontief factor demand function system, total factor productivity growth (TFPG) rates are calculated for the Turkish rubber industry during a substantial trade liberalization in the 1980s: TFPG was significantly higher following trade liberalization. Technological change was the major contributor to this growth. When a panel data estimation technique is used to explain technological change, the effects of trade liberalization become clearer: a one percentage point increase in the protection level led to more than a one percentage point (1.27) decline in the technological change rate.

Suggested Citation

  • Omer Gokcekus, 1997. "Trade liberalization and productivity growth: new evidence from the Turkish rubber industry," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 639-645.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:5:p:639-645
    DOI: 10.1080/000368497326831
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    Cited by:

    1. Omer Gokcekus & Yui Suzuki, 2016. "Mixing Washington Consensus With Beijing Consensus And Corruption In Africa," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(02), pages 1-14, June.
    2. Sangho KIM & Hyunjoon LIM & Donghyun PARK, 2007. "The Effect of Imports and Exports on Total Factor Productivity in Korea," Discussion papers 07022, Research Institute of Economy, Trade and Industry (RIETI).
    3. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.

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