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Trade integration and within-plant productivity evolution in Chile

[journal article]

Bas, Maria; Ledezma, Ivan

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Abstract We analyze the impact of trade integration on plant TFP using Chilean plant-level data (1982–1999) and 3-digit bilateral trade flows. Our contribution is to disentangle the impact of export and import barriers, estimated as border effects within a multilateral context. A fall in export barriers is positively correlated with plant productivity in traded sectors. The reduction of import barriers, however, can only be associated to productivity improvements in export-oriented sectors. In import-competing sectors a robust positive correlation shows up between plant productivity and protection. We then test several channels linking trade integration and firm productivity.
Keywords export; import; trade barrier; commerce; productivity; economic relations; Chile; developing country
Classification Economic Policy; Economic Sectors
Free Keywords Trade barriers; Plant productivity; Firm heterogeneity; Plant-level data; JEL classification: F1; F4; O1
Document language English
Publication Year 2010
Page/Pages p. 113-146
Journal Review of World Economics, 146 (2010) 1
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)