Protección y productividad: Causas y consecuencias de aislar sectores en una economía pequeña

Cecilia Durán () and Natalia Ferreira-Coimbra ()
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Cecilia Durán: Asesoría Política y Comercial, Ministerio de Economía y Finanzas, Uruguay.
Natalia Ferreira-Coimbra: Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República

No 2810, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: This paper aims to identify the productive sectors that can be isolated from international competition, analyzing the impact on productivity arising from a trade liberalization process. We focused on the case of Uruguay and select a basket of goods that show signs of not being competitive on a non-national scale and, at the same time, have a protection tool that takes the form of non-tariff barriers. In turn, we analyze the effects of protection on sector productivity through a difference-in-difference approach, finding that domestic protection in a context of economic liberalization has a negative impact on firms' productivity. Finally, a quick analysis from the political economy reveals that there are winners and losers in the process of trade liberalization. This makes the exclusion of sensitive sectors a viable mechanism for an opening that otherwise would not be a political equilibrium.

Keywords: trade protection; non–tariff barriers; productivity; difference in–difference model (search for similar items in EconPapers)
JEL-codes: F13 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2010-12
New Economics Papers: this item is included in nep-cis and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ude:wpaper:2810

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