IMF Staff Papers - December 2001 - Dynamic Gains from Trade: Evidence from South Africa By Gunnar Jonsson and Arvind Subramanian

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last updated: December 2001
Volume 48, Number 1

Dynamic Gains from Trade: Evidence from South Africa
By Gunnar Jonsson and Arvind Subramanian

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Abstract: This paper examines the empirical relationship between trade and total factor productivity (TFP) in South Africa. Using data on actual trade protection across different manufacturing sectors, it is shown that trade liberalization had a positive impact on TFP growth during the 1990s. In addition, time-series evidence on macro data supports a positive long-run relationship between TFP and openness. [JEL F14, F43, O40]