Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing

Satish Chand and Kunal Sen

Review of Development Economics, 2002, vol. 6, issue 1, 120-132

Abstract: The impact of trade liberalization 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 whether trade liberalization in Indian manufacturing has raised total factor productivity (TFP) growth. The answer is in the affirmative. The results also support a key postulate of the new growth theories, that liberalization of the intermediate‐good sectors has a larger favorable impact on TFP growth than that of the final‐good sectors.

Date: 2002
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https://doi.org/10.1111/1467-9361.00145

Related works:
Working Paper: Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing (1996)
Working Paper: Trade Liberalization and Productivity Growth: Evidence from Indian Manufacturing (1996)
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