Author: BENJAMIN NANCY FERRANTINO MICHAEL J.
Publisher: Routledge Ltd
ISSN: 1016-8737
Source: International Economic Journal, Vol.15, Iss.4, 2001-0, pp. : 95-115
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
Trade liberalization may promote economic growth in a number of ways, including by accelerating the rate of technological change. Firms that face more intense import competition may be spurred to greater rates of innovation; firms which export may absorb new technologies through their contact with international markets. This paper examines evidence on trade policy and productivity growth for a sample of thirteen OECD countries and including eighteen manufacturing sectors, using data primarily from the 1980s. Within individual sectors, there are strong productivity convergence effects within the OECD. After controlling for convergence, we find a positive association between high rates of productivity growth and low tariffs, and between high productivity growth and strong export performance. We found no particular association between high productivity growth and import penetration. The results are consistent with the possibility of positive linkages between trade liberalization and accelerated productivity growth. [Fl, 04]
Related content
Trade and growth Any unfinished business? - Productivity and patenting in the OECD
European Economic Review, Vol. 42, Iss. 3, 1998-05 ,pp. :
Productivity and trade unions in British manufacturing industry 1973–85
By Denny Kevin
Applied Economics, Vol. 29, Iss. 10, 1997-10 ,pp. :