2010
DOI: 10.1590/s0034-71402010000300004
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Abstract: This paper examines the effects of trade liberalization on productivity growth in Brazil. In contrast with the previous literature, we examine whether this relationship is driven by product or input market effects, by including both output and input tariffs in firm-level productivity regressions and allowing for imperfect competition in the product market. The results show that the reductions of input tariffs were more important to explain the productivity growth that took place during trade liberalization in … Show more

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Cited by 12 publications
(21 citation statements)
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References 15 publications
(13 reference statements)
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“…The value added per worker in the manufacturing industry decreased in the 1980s, during the external debt crisis, and it increased in the 1990s, after the trade and financial liberalisation (Ferreira and Rossi, 2003). The possibility to import cheap inputs with better quality had an immediate impact, increasing the value added per worker in the manufacturing industry, and it contributed to increase consumption, especially durable goods (Lisboa et al, 2010). However, the increase in total value added in the manufacturing industry was low in the 1990s and industrial employment reduced considerably.…”
Section: Stylised Facts For the Brazilian Economymentioning
confidence: 99%
“…The value added per worker in the manufacturing industry decreased in the 1980s, during the external debt crisis, and it increased in the 1990s, after the trade and financial liberalisation (Ferreira and Rossi, 2003). The possibility to import cheap inputs with better quality had an immediate impact, increasing the value added per worker in the manufacturing industry, and it contributed to increase consumption, especially durable goods (Lisboa et al, 2010). However, the increase in total value added in the manufacturing industry was low in the 1990s and industrial employment reduced considerably.…”
Section: Stylised Facts For the Brazilian Economymentioning
confidence: 99%
“…10 Brazil's protective policy stance has persisted despite the large positive effects of the previous unilateral trade liberalization episode of the late 1980s and early 1990s. The productivity effects of Brazil's previous unilateral trade liberalization have been found to be overwhelmingly positive (see rossi Jr and Ferreira 1999, schor 2004, Muendler 2004and Lisboa, Menezes Filho, and schor 2010. 11 Cirera et al (2015) also find a positive impact on productivity among Brazilian firms via the effects of improved imported inputs (learning by importing) that diffuse with positive spillovers from direct importing to other firms.…”
Section: Figure 34amentioning
confidence: 99%
“…However, the results are ambiguous in relation to profit margins and industrial concentration, indicating that there is no drop in market power after trade liberalization. Lisboa et al (2010) examine how openness in inputs markets is more important than competition effects to explain the growth of productivity in Brazil. They also verify that the drop in intermediary and input tariffs increases profit margins, whereas reducing final-product tariffs has an opposite effect.…”
Section: The Brazilian Trade Liberalization Experience Competition Imentioning
confidence: 99%