We consider two channels via which foreign inputs into industrial production may lead to productivity effects. The first one concerns dynamic externalities between firms which share technical and organizational knowledge which is vital for the productivity growth of a particular industry. We...

June 2000 - Empirical evidence supports the hypothesis that when tariffs and export taxes are important sources of revenue for developing countries, and when those countries have narrow tax bases and high tax rates, trade liberalization will come about when the governments diversify their...