Productivity, firm size and trade liberalization in a partner country: Evidence from Korean firm-level data

Kul Kapri

International Review of Economics & Finance, 2016, vol. 45, issue C, 572-583

Abstract: In this paper, I study the impact of partner-country tariffs on Korean firm-level productivity for the period from 2005 to 2009. I start by documenting that the rates at which total factor productivity, spending on technology, number of exporting firms, and exports grow are increasing with firm size. My results show that a reduction in China's tariffs induces Korean firms above median size to increase their productivity. Also, I find that the effect of any given tariff reduction is highest in the uppermost quartile of the firm-size distribution.

Keywords: Exports; Firm heterogeneity; Tariffs; Technology; Total factor productivity (search for similar items in EconPapers)
JEL-codes: F13 F14 F16 F63 L25 O12 O19 O24 O53 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:45:y:2016:i:c:p:572-583

DOI: 10.1016/j.iref.2016.01.010

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