Trade integration and within-plant productivity evolution in Chile

Maria Bas () and Ivan Ledezma ()
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Maria Bas: Paris School of Economics and CEPII (Centre d’Etudes Prospectives et d’Informations Internationales)
Ivan Ledezma: Paris School of Economics and Université Paris-Dauphine LEDa-DIAL

Review of World Economics (Weltwirtschaftliches Archiv), 2010, vol. 146, issue 1, No 6, 113-146

Abstract: Abstract We analyze the impact of trade integration on plant TFP using Chilean plant-level data (1982–1999) and 3-digit bilateral trade flows. Our contribution is to disentangle the impact of export and import barriers, estimated as border effects within a multilateral context. A fall in export barriers is positively correlated with plant productivity in traded sectors. The reduction of import barriers, however, can only be associated to productivity improvements in export-oriented sectors. In import-competing sectors a robust positive correlation shows up between plant productivity and protection. We then test several channels linking trade integration and firm productivity.

Keywords: Trade barriers; Plant productivity; Firm heterogeneity; Plant-level data (search for similar items in EconPapers)
JEL-codes: F1 F4 O1 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10290-009-0041-2

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