Protección y productividad: Causas y consecuencias de aislar sectores en una economía pequeña
This paper aims to identify the productive sectors that can be isolated from international competition, analyzing the impact on productivity arising from a trade liberalization process. We focused on the case of Uruguay and select a basket of goods that show signs of not being competitive on a non-national scale and, at the same time, have a protection tool that takes the form of non-tariff barriers. In turn, we analyze the effects of protection on sector productivity through a difference-in-difference approach, finding that domestic protection in a context of economic liberalization has a negative impact on firms' productivity. Finally, a quick analysis from the political economy reveals that there are winners and losers in the process of trade liberalization. This makes the exclusion of sensitive sectors a viable mechanism for an opening that otherwise would not be a political equilibrium.
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- Grossman, Gene M & Helpman, Elhanan, 1994.
"Protection for Sale,"
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- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 21-92, Tel Aviv.
- Gene M. Grossman & Elhanan Helpman, 1992. "Protection For Sale," NBER Working Papers 4149, National Bureau of Economic Research, Inc.
- Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
- Grossman, G.M. & Helpman, E., 1992. "Protection for Sale," Papers 162, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, G.M. & Helpman, E., 1993.
"The Politics of Free Trade Agreements,"
14-93, Tel Aviv.
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- Olarreaga, Marcelo & Soloaga, Isidro, 1998.
"Endogenous Tariff Formation: The Case of Mercosur,"
CEPR Discussion Papers
1848, C.E.P.R. Discussion Papers.
- Julio Berlinsky (coordinador) & Honório Kume (coordinador) & Marcel Vaillant (coordinador) & Guida Piani & Álvaro Ons & Pedro Miranda & Carlos Romero & Red MERCOSUR, 2006. "Hacia una política comercial común del MERCOSUR," Serie Red MERCOSUR, Red Mercosur, edition 1, volume 1, number 5 edited by Red MERCOSUR, Autumn.
- Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494 Elsevier.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Sourafel Girma & David Greenaway & Richard Kneller, 2004. "Does Exporting Increase Productivity? A Microeconometric Analysis of Matched Firms," Review of International Economics, Wiley Blackwell, vol. 12(5), pages 855-866, November.
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