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Trade integration and within-plant productivity evolution in Chile

  • Maria Bas

    (PSE - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC))

  • Ivan Ledezma

    (PSE - Paris School of Economics, PSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris - École des Ponts ParisTech (ENPC))

We study the impact of trade on productivity using Chilean plant-level data (1982-1999). Our contribution is to disentangle the impact of export and import barriers. Firstly, we estimate the production functions to obtain plant TFP. Secondly, we estimate trade barriers (border effects) between Chile and its trading partners at the industry level and over time. Finally, we test the impact of trade barriers by regressing productivity on border effect estimates. A fall in export barriers improves productivity in traded sectors, while the reduction of import barriers might foster productivity in export industries but it hurts firms in import-competing ones.

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Date of creation: Oct 2008
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Handle: RePEc:hal:psewpa:halshs-00588309
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