Trade liberalization and productivity growth: new evidence from the Turkish rubber industry

Omer Gokcekus

Applied Economics, 1997, vol. 29, issue 5, 639-645

Abstract: This paper empirically examines the effects of a change in foreign trade regime on productivity growth. Based on a Generalized Leontief factor demand function system, total factor productivity growth (TFPG) rates are calculated for the Turkish rubber industry during a substantial trade liberalization in the 1980s: TFPG was significantly higher following trade liberalization. Technological change was the major contributor to this growth. When a panel data estimation technique is used to explain technological change, the effects of trade liberalization become clearer: a one percentage point increase in the protection level led to more than a one percentage point (1.27) decline in the technological change rate.

Date: 1997
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DOI: 10.1080/000368497326831

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