Trade policy, trade volumes and plant-level productivity in Colombian manufacturing industries

• 成果类型: Article
• 署名作者: Fernandes, Ana M.
• 署名单位: The World Bank
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2006.03.003
• 发表日期: 2007
• 页码: 52-71
• 关键词: simultaneity and production functions; Trade policy; PRODUCTIVITY; Colombian manufacturing; endogeneity of protection

摘要

This paper explores a period of substantial variation in trade policy across industries in Colombia (1977-1991) to examine whether increased exposure to foreign competition generates productivity gains for manufacturing plants. Using an estimation methodology that addresses the shortcomings of previous studies, we find a strong positive impact of tariff liberalization on plant productivity, even after controlling for plant and industry heterogeneity, real exchange rates, and cyclical effects. The impact of liberalization is stronger for larger plants and plants in less competitive industries. Our findings are not driven by the endogeneity of protection. Similar results are obtained when using effective rates of protection and import penetration ratios as measures of protection. Productivity gains under trade liberalization are linked to increases in intermediate inputs' imports, skill intensity, and machinery investments, and to output reallocations from less to more productive plants. (c) 2006 Elsevier B.V. All rights reserved.