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Assessing the Trade-Related Sources of Productivity Growth in Emerging Economies

Author

Listed:
  • Przemyslaw Kowalski

    (OECD)

  • Max Büge

    (OECD)

Abstract

This paper contributes new empirical evidence on the relationship between productivity and international trade. This is accomplished using an econometric approach that combines input-output and productivity data, which allows a more detailed tracking of the relationship between trade in intermediate and final products and productivity in countries at different stages of economic development. The results show that various forms of trade integration strongly support productivity in emerging economies. Exporting final products, importing intermediates for domestic production and re-exporting are all associated with higher productivity levels, pointing to the particular importance for this country grouping of being able to integrate into regional and global value chains. Our results emphasise also important linkages between different economic sectors and call for broad-based approaches to facilitating integration with foreign intermediate inputs and final products markets.

Suggested Citation

  • Przemyslaw Kowalski & Max Büge, 2013. "Assessing the Trade-Related Sources of Productivity Growth in Emerging Economies," OECD Trade Policy Papers 158, OECD Publishing.
  • Handle: RePEc:oec:traaab:158-en
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    File URL: http://dx.doi.org/10.1787/5k437p82nxq1-en
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    More about this item

    Keywords

    developing economies; emerging economies; global value chains; intermediate imports; international trade; productivity;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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