Description: Trade Policy, Trade Volumes, and Plant-Level Productivity in Colombian Manufacturing Industries

Trade Policy, Trade Volumes, and Plant-Level Productivity in Colombian Manufacturing Industries

Fernandes explores Colombian trade policy from 1977-91, a period of substantial variation in protection across industries, to examine whether increased exposure to foreign competition generates plant-level productivity gains. Using a large panel of...

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Bibliographic Details
Main Author:	Fernandes, Ana Margarida
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	APPAREL AVERAGE TARIFF CAPITAL GOODS CAPITAL STOCK CENTRAL BANK CHANGES IN TRADE COMPETITORS CONDITIONS CONSTANT RETURNS TO SCALE CONSUMERS CURRENT ACCOUNT DEVELOPMENT ECONOMICS DOMESTIC COMPETITION DOMESTIC MARKET DOMESTIC PRODUCERS DOMESTIC PRODUCTION EMPIRICAL EVIDENCE EMPLOYMENT EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED VALUE EXPLOITATION EXPORT ORIENTATION EXPORTERS EXPORTS FINAL GOODS FOREIGN COMPETITION FOREIGN INDUSTRIES FUELS HIGH TARIFFS IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT BARRIERS IMPORT COMPETITION IMPORT LICENSING IMPORT PENETRATION IMPORT SUBSTITUTION IMPORT SUBSTITUTION INDUSTRIALIZATION IMPORTS INDUSTRIAL CLASSIFICATION INDUSTRIAL PRODUCTION INDUSTRIAL PRODUCTIVITY INDUSTRIALISTS INDUSTRIALIZATION INEFFICIENCY INFLATION INPUT PRICES INPUT USE INTERMEDIATE INPUTS INVENTORIES LICENSING MACROECONOMIC SHOCKS MARKET SHARE MEASURE OF TRADE METAL PRODUCTS METALS MONEY SUPPLY OLIGOPOLY OPPORTUNITY COST OPTIMIZATION POLITICAL ECONOMY PRICE INDEXES PRODUCERS PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION TECHNOLOGY PRODUCTIVITY PRODUCTIVITY GROWTH PROFIT MAXIMIZATION RATES OF PROTECTION REAL EXCHANGE RATE TARIFF DATA TARIFF LEVELS TARIFF RATES TARIFF REVENUE TAX REVENUE TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE NEGOTIATIONS TRADE OPENNESS TRADE POLICY TRADE PROTECTION TRADE REFORM TRADE REGIME TRADE REGIMES TRADE RESTRICTIONS TRADE VOLUMES UNSKILLED LABOR URUGUAY ROUND VALUE ADDED VARIABLE INPUTS WORKER TRAINING TRADE POLICY MANUFACTURING PRODUCTION TARIFF POLICY DEVELOPING COUNTRIES PLANT PRODUCTS LOBBYING INDUSTRY FINANCE WORKER TRAINING
Online Access:	http://documents.worldbank.org/curated/en/2003/05/2386465/trade-policy-trade-volumes-plant-level-productivity-colombian-manufacturing-industries http://hdl.handle.net/10986/18217

Description
Summary:	Fernandes explores Colombian trade policy from 1977-91, a period of substantial variation in protection across industries, to examine whether increased exposure to foreign competition generates plant-level productivity gains. Using a large panel of manufacturing plants, she finds a strong positive impact of tariff liberalization on consistent productivity estimates, controlling for plant and industry heterogeneity. This result is not driven by the endogeneity of protection nor by plant exit. The impact of tariff liberalization on productivity is stronger for large plants and for plants in less competitive industries. Qualitatively similar results are obtained when using effective rates of protection and import penetration ratios as measures of protection

Trade Policy, Trade Volumes, and Plant-Level Productivity in Colombian Manufacturing Industries

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