Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency

Kim, Euysung

doi:10.1016/s0304-3878(00)00075-4

Cited by 123 publications

(78 citation statements)

References 20 publications

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“…This turns out to be in fact the case with the trade reforms in Mexico in the 1980's and Colombia in the 1990's. 23 See Harrison (1994) for Cote d'Ivoire, Mitra (1998), Aghion, Burgess, Redding, Zilibotti (2003), and Topalova (2003) for India, Kim (2000) for Korea, Pavcnik for Chile (2002), Fernandes for Colombia (2003), Muendler (2004) and Hay (2001) for Brazil.…”

Section: Industry Wagesmentioning

confidence: 99%

Distributional Effects of Globalization in Developing Countries

Goldberg¹,

Pavcnik²

2007

495

651

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We discuss recent empirical research on how globalization has affected income inequality in developing countries. We begin with a discussion of conceptual issues regarding the measurement of globalization and inequality. Next, we present empirical evidence on the evolution of globalization and inequality in several developing countries during the 1980s and 1990s. We then examine the channels through which globalization may have affected inequality discussing theory and evidence in parellel. We conclude with directions for future research.

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Section: Industry Wagesmentioning

confidence: 99%

Distributional Effects of Globalization in Developing Countries

Goldberg¹,

Pavcnik²

2007

495

651

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“…Hence, a possible way that a model can generate a capital flow to a poorer country is by means of a productivity increase. Kim (2000) provides evidence that trade liberalization had a positive impact on the productivity of Korean manufactures. Tybout and Westbrook (1995) shows that a similar event took place in Mexico during the trade liberalization of the 90s.…”

Section: The Experimentsmentioning

confidence: 99%

“…Second, we are likely underestimating the impacts of the FTAA. As pointed out by, among others, Kim (2000) and Tybout and Westbrook (1995), trade liberalization is often followed by an increment in total factor productivity (TFP). Since our model is static, we cannot capture such an increment.…”

Section: Introductionmentioning

confidence: 99%

The impacts of trade blocks and tax reforms on the Brazilian economy

Cunha¹,

Teixeira²

2004

Rev. Bras. Econ.

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This paper uses a general equilibrium model to evaluate the impacts of trade agreements and tax reforms on the Brazilian economy. The model predicts that welfare gains will happen whether Argentina reduces the tariffs it places on Brazilian products or the Free Trade Area of the Americas (FTAA) is implemented. However, the FTAA engenders larger welfare gains. These gains will be even larger if the FTAA is implemented simultaneously to a reduction on domestic consumption taxes. These findings suggest that most of the gains come from the reduction of Brazilian tariff and tax rates.Adota-se neste artigo um modelo de equilíbrio geral para avaliar os impactos de acordos comerciais e uma reforma tributária sobre a economia brasileira. O modelo prediz que ganhos de bemestar ocorrerão se a Argentina reduzir as tarifas sobre os produtos brasileiros ou se aÁrea de Livre Comércio das Américas (ALCA) for implementada. Contudo, a ALCA induz ganhos mais expressivos. Tais ganhos serão ainda maiores se a ALCA for implementada simultaneamente a uma redução do imposto sobre consumo. Essas conclusões sugerem que a maior parte dos ganhos decorrem de reduções nos impostos de importação e consumo existentes no Brasil.

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“…Several studies show that structural changes such as discernible reductions in tariff and non-tariff barriers, especially at both ends of the trade partnership, do increase, albeit modestly, the productivity of manufacturing industries (see, for example, Economidou and Murshid, 2008, for 12 OECD economies). Some of the more notable developing-country case studies along this line include Tybout, et al (1991) and Pavcnik (2002) for Chile, Harrison (1994) for the Ivory Coast, Iscan (1998) for Mexico, Kim (2000) for Korea, Krishna, and Mitra (1998) and Milner, et al (2007) for India , Moreira, and Correa (1998), Hay (2001) and Sachor (2004) for Brazil, Fernandes (2003) for Colombia, and Mahadevan (2007) for Malaysia.…”

Section: The Elusive Productivity Effect Of Trade Liberalization In Tmentioning

confidence: 99%

“…Ways to handle this simultaneity bias include instrumenting inputs with factor prices or investment, using lagged values of inputs (investment, intermediates) as instruments, or using a two-stage approach (see Levinsohn and Petrin, 2003;Schor, 2004). Unlike many econometric studies on the subject (see, for example, Krishna and Mitra, 1998;Kim, 2000;Fernandes, 2003), we do not have firm-level data where managerial decisions on input mixes can be modeled in the context of known productivity shocks. Furthermore, since (6) is estimated in log differences, lagged changes in the inputs could not serve as good instruments.…”

Section: Estimation Issuesmentioning

confidence: 99%

The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies

Abegaz

Basu

2011

Emerging Markets Finance and Trade

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ZEF Discussion Papers on Development Policy 141List of Tables The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies AcknowledgementsThe authors wish to thank Paul Charpentier and Hang Nguyen for able research assistance. We are also grateful to Ulrich Hiemenz, seminar participants at the University of Hannover, Germany, and two anonymous referees for their comments and suggestions. Basu thanks the Alexander von Humboldt Foundation for research support. The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies 1 AbstractUsing a model that admits variable returns and imperfect competition, we investigate the impact on total factor productivity of trade liberalization in six emerging economies. Regressions based on panel data for 28 three-digit manufacturing industries show that productivity growth is insensitive to tariff reduction. These results are at variance with countryspecific studies which, using firm-level data, generally find a positive association between liberalization and productivity growth. While aggregation effects may matter, our results can also be explained thusly: significant productivity gains by latecomers via technological assimilation do take time and require appropriate sequencing of reforms of trade and industrial policies.

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Trade liberalization and productivity growth in Korean manufacturing industries: price protection, market power, and scale efficiency

Cited by 123 publications

References 20 publications

Distributional Effects of Globalization in Developing Countries

Distributional Effects of Globalization in Developing Countries

The impacts of trade blocks and tax reforms on the Brazilian economy

The Elusive Productivity Effect of Trade Liberalization in the Manufacturing Industries of Emerging Economies

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