International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries

January 1, 2000

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper estimates an empirical relation based on Krugman’s ‘technological gap’ model to explore the influence of the pattern of international trade and production on the overall productivity growth of a developing country. A key result is that increased import competition in medium-growth (but not in low- or high-growth) manufacturing sectors enhances overall productivity growth. The authors also find that a production-share weighted average of (technological leaders’) sectoral productivity growth rates has a significant effect on the rate of aggregate productivity growth.

Subject: Imports, International trade, Production, Productivity, Technology, Technology transfer, Total factor productivity

Keywords: East Asia, gap in a sector, growth performance, Imports, Middle East, North Africa, Productivity, productivity gap, Productivity Growth, s TFP growth, South Asia, Sub-Saharan Africa, Technological Gap, technology lag, Technology transfer, TFP growth rate, Total factor productivity, trade effect, trade index, Trade Liberalization, trade ratio, trade variable, WP

Pages:
24
Volume:
2000
DOI:
https://doi.org/10.5089/9781451843521.001
Issue:
017
Series:
Working Paper No. 2000/017
Stock No:
WPIEA0172000
ISBN:
9781451843521
ISSN:
1018-5941

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