The manufacturing sector is an important source of productivity growth and exports. Manufacturing firms are generally more productive than firms in the agricultural or services sectors and are an important source of job creation. Little is known about the productivity performance of the sector...

An often-neglected potential negative consequence of tariffs is the impact they may have on the misallocation of factor inputs. Trade protection can provide space for domestic firms to increase prices and mark-ups, allowing low-productivity firms to survive, thereby leading to a sub-optimal...