We study the effect of services trade restrictiveness on manufacturing productivity for a broad cross-section of countries at different stages of economic development. Decreasing services trade restrictiveness has a positive indirect impact on the manufacturing sectors that use services as...

We develop a dynamic structural model to analyze the impact of input tariff liberalization on input prices, trading decisions, productivity, and firm performance. While input tariff liberalization directly affects input price benefits of importing, its impact on trade participation generates...

This paper estimates the effects of trade liberalization on plant productivity. In contrast to previous studies, we distinguish between productivity gains arising from lower tariffs on final goods relative to lower tariffs on intermediate inputs. Lower output tariffs can produce productivity...

Using a panel of firm-level data, this paper examines the effects of India's trade reforms in the early 1990s on firm productivity in the manufacturing sector, focusing on the interaction between this policy shock and firm and environment characteristics. The rapid and comprehensive tariff...

In this paper we show that the relationship between trade liberalization and fi rm productivity is sensitive to the method used to estimate the production function. We estimate the productivity of Colombian manufacturing plants using the methods of Levinsohn and Petrin (2003), Ackerberg, Caves...

This paper examines India's welfare gain after becoming a WTO member in comparison to pre-WTO scenario. The mechanism closely follows Lai, Riezman & Wang (2016) that took up the Chinese case. In defining the theoretical welfare estimates, we employ a simple and modified version of Arkolakis,...

This paper examines the effect of trade liberalization or globalization, more broadly, on plants' growth as well as on “bi-polarization”. To do so, we reviewed the possible theoretical mechanisms put forward by recent heterogeneous firm trade theories, and provided available micro-evidence...

The literature on trade liberalization has recently shifted its attention from trade liberalization in imported final goods to studying the effects of trade liberalization in imported intermediate inputs. This emphasis fits very well the trade liberalization experience of China following its...

The main objective of this study is to determine whether there have been TFP increases in the Korean manufacturing sector due to trade liberalization since the 1990s. Based on the methodology proposed by Pavcnik (2002), which focuses on the channel through which trade liberalization measures...

We analyze the impact of trade liberalization on firm productivity growth in Kenya's manufacturing sector, using a panel spanning 8 years; 1992-1999. Our analysis reveals that liberalizing trade generates high productivity improvements in the manufacturing sector. We find that a one-unit...