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Trade integration and within-plant productivity evolution in Chile

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  • Maria Bas

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Ivan Ledezma

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Maria Bas & Ivan Ledezma, 2008. "Trade integration and within-plant productivity evolution in Chile," Working Papers halshs-00588309, HAL.
    • Handle: RePEc:hal:wpaper:halshs-00588309
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00588309
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    Citations

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    Cited by:

    1. Pian Shu & Claudia Steinwender, 2019. "The Impact of Trade Liberalization on Firm Productivity and Innovation," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 39-68.
    2. Antonio Navas & Davide Sala, 2015. "Innovation and Trade Policy Coordination: The Role of Firm Heterogeneity," The World Economy, Wiley Blackwell, vol. 38(8), pages 1205-1224, August.
    3. Maria Bas & Pamela Bombarda, 2013. "Chinese Trade Reforms, Market Access and Foreign Competition: The Patterns of French Exporters," The World Bank Economic Review, World Bank, vol. 27(1), pages 80-108.
    4. Raphael Bergoeing Vela & Andrés Hernando & Andrea Repetto, 2010. "Market Reforms and Efficiency Gains in Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 37(2 Year 20), pages 217-242, December.
    5. Sarra Ben Yahmed & Sean Dougherty, 2012. "Import Competition, Domestic Regulation and Firm-Level Productivity Growth in the OECD," OECD Economics Department Working Papers 980, OECD Publishing.
    6. Ildik� Magyari, 2017. "Firm Reorganization, Chinese Imports, and US Manufacturing Employment," Working Papers 17-58, Center for Economic Studies, U.S. Census Bureau.
    7. Sarra Ben Yahmed & Sean Dougherty, 2017. "Domestic regulation, import penetration and firm-level productivity growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(4), pages 385-409, May.
    8. Maria Bas & Ivan Ledezma, 2020. "Trade liberalization and heterogeneous firms’ adjustments: evidence from India," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 407-441, May.
    9. Maria Bas, 2009. "Trade, Foreign Inputs and Firms’ Decisions: Theory and Evidence," Working Papers 2009-35, CEPII research center.
    10. Maria Bas & Ivan Ledezma, 2015. "Trade Liberalization and Heterogeneous Technology Investments," Review of International Economics, Wiley Blackwell, vol. 23(4), pages 738-781, September.
    11. Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(2), pages 241-275, May.
    12. Rodríguez-Castelán, Carlos & López-Calva, Luis Felipe & Barriga-Cabanillas, Oscar, 2023. "Market concentration, trade exposure, and firm productivity in developing countries: Evidence from Mexico," World Development, Elsevier, vol. 165(C).
    13. Yoshimichi Murakami, 2021. "Trade liberalization and wage inequality: Evidence from Chile," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(3), pages 407-438, April.
    14. Maria Bas & Pamela Bombarda, 2011. "Unilateral trade reform, Market Access and Foreign Competition: the Patterns of Multi-Product Exporters," Working Papers 2011-18, CEPII research center.

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    More about this item

    Keywords

    trade barriers; plant productivity; firm heterogeneity; plant level data; barrières douanières; hétérogénéité des firmes; gains de productivité; données de panel;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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