Does Market Liberalization Increase Total Factor Productivity: Evidence from the Manufacturing Sector in Zimbabwe

Hans Bjurek () and Dick Durevall ()
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Hans Bjurek: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Department of Economics., School of Economics and Commercial Law, Göteborg University, Box 640, SE 40530 GÖTEBORG
Dick Durevall: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Department of Economics., School of Economics and Commercial Law, Göteborg University, Box 640, SE 40530 GÖTEBORG

No 10, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: In this paper we analyze if the structural adjustment program (ESAP), implemented during 1991-1995, contributed to an increase in total factor productivity in the manufacturing sector. To evaluate if productivity has grown we first estimate indexes of total factor productivity for 31 manufacturing sub-sectors for the period 1980-1995. Then we use panel data methods to test for the effects of trade reform and other variables related to ESAP. In general the growth rates vary greatly both over time and across sections. The overall impression is that there was no growth in total factor productivity on average during the whole period of ESAP. However, during the last two years, 1994-1995, most sub-sectors experienced increases in total factor productivity.

Keywords: Structural adjustment; trade reform; foreign aid; Malmquist index (search for similar items in EconPapers)
JEL-codes: O19 O47 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1998-12-10
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Citations: View citations in EconPapers (3)

Published in Journal of Southern African Studies, 2000, pages 463-479.

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