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

Ehsan Choudhri (ehsan_choudhri@carleton.ca) and Dalia Hakura

No 2000/017, IMF Working Papers from International Monetary Fund

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.

Keywords: WP; Productivity Growth; Trade Liberalization; Technological Gap; TFP growth rate; trade variable; trade effect; trade ratio; technology lag; s TFP growth; gap in a sector; growth performance; trade index; productivity gap; Productivity; Total factor productivity; Imports; Technology transfer; East Asia; Middle East; North Africa; Sub-Saharan Africa; South Asia (search for similar items in EconPapers)
Pages: 24
Date: 2000-01-01
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Citations: View citations in EconPapers (33)

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