EconStor >
Yale University >
Economic Growth Center (EGC), Yale University >
Center Discussion Papers, Economic Growth Center (EGC), Yale University >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/39342
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorFernandes, Anaen_US
dc.date.accessioned2010-08-26T11:58:14Z-
dc.date.available2010-08-26T11:58:14Z-
dc.date.issued2002en_US
dc.identifier.urihttp://hdl.handle.net/10419/39342-
dc.description.abstractThis paper offers new insights on a central question in trade and development economics: does increased exposure to foreign competition generate gains in plant productivity? We find that it does. We examine Colombian trade policy from 1977 to 1991, a period during which trade liberalization alternates with increased trade protection in varied ways across industries, to investigate the link between trade policy and plant productivity. Using a rich panel of manufacturing plants, we obtain production function estimates separately across industries that are consistent in face of the simultaneity between input demands and productivity. These estimates are used to derive plant-level time-varying productivity measures for which a systematic component related to trade policy is identified. We find a strong negative impact of nominal tariffs on plant productivity controlling for observed and unobserved plant characteristics and industry heterogeneity. The use of lagged tariffs and the evidence on the political economy of tariff determination in Colombia allow us to argue that the negative impact of tariffs is unlikely to reflect the endogeneity of protection. Plant exit plays a minor role in generating productivity gains in face of lower trade protection. Also, accounting for variation in the Colombian peso's real exchange rate does not weaken the main findings. The negative impact of trade protection on productivity is stronger for large plants relative to small plants, as measured by employment and market shares. The negative impact of trade protection on productivity is stronger for plants in less competitive industries according to Herfindahl indexes and turnover rates. The main findings are robust to the use of effective rates of protection and import penetration ratios as measures of trade protection and openness. Finally, we also find evidence of a negative impact of trade protection on the rate of growth of plant productivity.en_US
dc.language.isoengen_US
dc.publisherYale Univ., Economic Growth Center New Haven, Conn.en_US
dc.relation.ispartofseriesCenter discussion paper // Economic Growth Center 847en_US
dc.subject.jelF13en_US
dc.subject.jelD24en_US
dc.subject.jelC14en_US
dc.subject.jelO54en_US
dc.subject.ddc330en_US
dc.subject.keywordSimultaneity and Production Functionsen_US
dc.subject.keywordTrade Policyen_US
dc.subject.keywordProductivityen_US
dc.subject.keywordColombian Manufacturingen_US
dc.subject.keywordEndogeneity of Protectionen_US
dc.titleTrade policy, trade volumes and plant-level productivity in Colombian manufacturing industriesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn361029829en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Center Discussion Papers, Economic Growth Center (EGC), Yale University

Files in This Item:
File Description SizeFormat
361029829.pdf503.23 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.