We estimate the relationship between productivity and trade for a panel of countries over the period 1980 to 2000 using … instrumental-variables estimation of a productivity equation. We note that some estimates of productivity gains attributed to trade … productivity. The trade instrument is based on a ‘theoretically motivated’ gravity equation. The instruments for institutional …

higher profits, but forcing less-productive firms to reduce prices and earn lower profits. As a result, low-productivity …

We estimate the effect of international trade on average labor productivity across countries. Our empirical approach … empirical grounds. In contrast to the marginally significant and non-robust effects of trade on productivity found previously … empirical analysis. We also examine the channels through which trade and institutional quality affect average labor productivity …