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International Trade and Productivity Growth; Exploring the Sectoral Effects for Developing Countries

Author

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  • Ehsan U. Choudhri
  • Dalia S Hakura

Abstract

The paper estimates an empirical relation based on Krugman’s ‘technological gap’ model to explore the influence of the pattern of international trade and production on the overall productivity growth of a developing country. A key result is that increased import competition in medium-growth (but not in low- or high-growth) manufacturing sectors enhances overall productivity growth. The authors also find that a production-share weighted average of (technological leaders’) sectoral productivity growth rates has a significant effect on the rate of aggregate productivity growth.

Suggested Citation

  • Ehsan U. Choudhri & Dalia S Hakura, 2000. "International Trade and Productivity Growth; Exploring the Sectoral Effects for Developing Countries," IMF Working Papers 00/17, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:00/17
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    Cited by:

    1. María Soledad Feal Zubimendi, 2008. "Crecimiento económico y apertura comercial: análisis de la influencia de los canales," Estudios Economicos, Universidad Nacional del Sur, Departamento de Economia, vol. 25(50), pages 37-73, January-j.
    2. R. Rijesh, 2015. "Technology Import and Manufacturing Productivity in India: Firm Level Analysis," Journal of Industry, Competition and Trade, Springer, vol. 15(4), pages 411-434, December.
    3. Xiaolan Fu, 2004. "Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries," Working Papers wp278, Centre for Business Research, University of Cambridge.
    4. Allan D. Brunner, 2003. "The Long-Run Effects of Tradeon Income and Income Growth," IMF Working Papers 03/37, International Monetary Fund.
    5. Nursini Nursini, 2017. "Effect of Fiscal Policy and Trade Openness on Economic Growth in Indonesia: 1990-2015," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 358-364.
    6. Ang, James B., 2009. "CO2 emissions, research and technology transfer in China," Ecological Economics, Elsevier, vol. 68(10), pages 2658-2665, August.
    7. Vidya Mahambare & V. N. Balasubramanyam, 2005. "Trade Liberalisation and India’s Manufacturing Sector," Development and Comp Systems 0505010, University Library of Munich, Germany.
    8. Jalil, Abdul, 2014. "Energy–growth conundrum in energy exporting and importing countries: Evidence from heterogeneous panel methods robust to cross-sectional dependence," Energy Economics, Elsevier, vol. 44(C), pages 314-324.
    9. Jörg Mayer & Arunas Butkevicius & Ali Kadri & Juan Pizarro, 2004. "Dynamic products in world exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 762-795, September.
    10. Hussien, Abdurohman & Ahmed, Shakeel & Yousaf, Muhammed, 2012. "Does Trade Policy Explain Total Factor Productivity Differences Across Countries?," MPRA Paper 86594, University Library of Munich, Germany.
    11. Managi, Shunsuke & Kumar, Surender, 2009. "Trade-induced technological change: Analyzing economic and environmental outcomes," Economic Modelling, Elsevier, vol. 26(3), pages 721-732, May.
    12. Julia Wörz, 2005. "Skill Intensity in Foreign Trade and Economic Growth," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(1), pages 117-144, March.
    13. Harrison, Ann & Rodríguez-Clare, Andrés, 2010. "Trade, Foreign Investment, and Industrial Policy for Developing Countries," Handbook of Development Economics, Elsevier.
    14. repec:rss:jnljms:v7i6p4 is not listed on IDEAS
    15. Azim M Sadikov & Hans P Lankes & Dustin Smith & Katrin Elborgh-Woytek & Jean-Jacques Hallaert, 2006. "Fiscal Implications of Multilateral Tariff Cuts," IMF Working Papers 06/203, International Monetary Fund.
    16. Katrin Elborgh-Woytek, 2003. "Of Openess and Distance; Trade Developments in the Commonwealth of Independent States, 1993-2002," IMF Working Papers 03/207, International Monetary Fund.

    More about this item

    Keywords

    Developing countries; Economic models; International trade; Trade liberalization; Productivity Growth; Technological Gap; tfp; growth rates; growth rate; transfer of technology;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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