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Impacts of trade liberalization on countries’ sectoral structure of production and trade: A structural decomposition analysis

Guilherme Magacho, John S.L. McCombie and Joaquim Guilhoto ()

Structural Change and Economic Dynamics, 2018, vol. 46, issue C, 70-77

Abstract: This study extends structural decomposition analysis (SDA) to consider the substitution between domestic and imported inputs. The approach provides a detailed investigation of the consequences on economic growth following changes in countries’ supply chains. We apply the method to data from Brazil and other countries. The results suggest that the substitution of imported for national inputs is a key factor in SDA, assuming that the impact of technological change is underestimated if this substitution is not taken into account.

Keywords: Structural decomposition analysis; Structural change; Open economies growth; Deindustrialization (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:streco:v:46:y:2018:i:c:p:70-77