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International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries

Ehsan Choudhri () and Dalia Hakura

IMF Staff Papers, 2000, vol. 47, issue 1, 2

Abstract: The paper estimates an empirical relation based on Krugman's "technological gap" model to explore the influence of the pattern of international trade and production on the overall productivity growth of a developing country. A key result is that increased import competition in medium-growth (but not in low- or high-growth) manufacturing sectors enhances overall productivity growth. The authors also find that a production-share weighted average of (technological leaders') sectoral productivity growth rates has a significant effect on the rate of aggregate productivity growth. Copyright 2000, International Monetary Fund

JEL-codes: F10 F43 O10 O40 (search for similar items in EconPapers)
Date: 2000
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