Trade integration and within-plant productivity evolution in Chile

Bas, Maria; Ledezma, Ivan
April 2010
Review of World Economics;Apr2010, Vol. 146 Issue 1, p113
Academic Journal
We analyze the impact of trade integration on plant TFP using Chilean plant-level data (1982�1999) and 3-digit bilateral trade flows. Our contribution is to disentangle the impact of export and import barriers, estimated as border effects within a multilateral context. A fall in export barriers is positively correlated with plant productivity in traded sectors. The reduction of import barriers, however, can only be associated to productivity improvements in export-oriented sectors. In import-competing sectors a robust positive correlation shows up between plant productivity and protection. We then test several channels linking trade integration and firm productivity.


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