Assessing the Trade-Related Sources of Productivity Growth in Emerging Economies

Przemyslaw Kowalski () and Max Büge
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Max Büge: OECD

No 158, OECD Trade Policy Papers from OECD Publishing

Abstract: This paper contributes new empirical evidence on the relationship between productivity and international trade. This is accomplished using an econometric approach that combines input-output and productivity data, which allows a more detailed tracking of the relationship between trade in intermediate and final products and productivity in countries at different stages of economic development. The results show that various forms of trade integration strongly support productivity in emerging economies. Exporting final products, importing intermediates for domestic production and re-exporting are all associated with higher productivity levels, pointing to the particular importance for this country grouping of being able to integrate into regional and global value chains. Our results emphasise also important linkages between different economic sectors and call for broad-based approaches to facilitating integration with foreign intermediate inputs and final products markets.

Keywords: developing economies; emerging economies; global value chains; intermediate imports; international trade; productivity (search for similar items in EconPapers)
JEL-codes: F13 F14 F43 F63 (search for similar items in EconPapers)
Date: 2013-07-30
New Economics Papers: this item is included in nep-cwa, nep-eff and nep-int
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:158-en

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