Dynamic Gains From Trade: Evidence From South Africa

Arvind Subramanian and Gunnar Jonsson

No 2000/045, IMF Working Papers from International Monetary Fund

Abstract: This paper examines the empirical relationship between trade and total factor productivity (TFP) in South Africa. It uses (i) a time series approach where trade is defined in terms of aggregate outcomes, i.e., as the share of imports plus exports in GDP, and (ii) a cross sectional approach, where trade is defined in terms of trade policy, i.e., as actual trade protection across different manufacturing sectors. The results indicate that there is a significant positive relationship between trade and TFP growth both over time and across sectors.

Keywords: WP; TFP growth; tariff; trade; Openness; trade liberalization; growth; total factor productivity; tariff regime; TFP series; import tariff; trade policy orientation; tariff reduction; tariff line; time series; formula duty; trade policy variable; Tariffs; Trade policy; Imports; Africa (search for similar items in EconPapers)
Pages: 32
Date: 2000-03-01
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Citations: View citations in EconPapers (18)

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Journal Article: Dynamic Gains from Trade: Evidence from South Africa (2001)
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