Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing
Satish Chand and
Kunal Sen
Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics
Abstract:
The impact of trade liberalisation on productivity growth is still an empirical issue; the theoretical literature is as yet unclear on the direction of any such association. This paper develops an analytical framework and employs it to empirically test if trade liberalisation in Indian manufacturing has raised total factor productivity (TFP) growth. The answer is in the affirmative. Our results also support a key postulate of the new growth theories that liberalisation of the intermediate good sectors has a larger favourable impact on TFP growth than that of the final good sectors.
Pages: 32 pages
Date: 1996
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Citations: View citations in EconPapers (31)
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