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Trade liberalization and inter-industry productivity spillovers: a dynamic spatial panel approach

Lourenco Paz

Economics Bulletin, 2013, vol. 33, issue 3, 2379-2393

Abstract: The use of trade liberalization to enhance manufacturing productivity has been a commonly applied policy in several developing countries since the 1980s. This paper proposes a new methodology to estimate the inter-industry productivity spillovers that may occur in such reforms. The findings from a study of the Brazilian trade liberalization episode (1989-1998) indicate that inter-industry productivity spillovers exist, are positive, and account for 70% of the increase in productivity that results from a reduction in import tariffs.

Keywords: productivity; spatial panel econometrics; spillovers; trade liberalization; Brazil; Input-Output matrix (search for similar items in EconPapers)
JEL-codes: F1 L6 (search for similar items in EconPapers)
Date: 2013-09-17
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