The role of trade policies in increasing growth and efficiency has long been a major focus in the development literature. This paper examines the impact of different development strategies, especially export expansion and import substitution trade policies, on total factor productivity growth in the manufacturing industries. The analysis is based on recently developed data on sectoral total factor productivity in Korea, Turkey, and Yugoslavia, with Japan as a comparator. Our results indicate that there are important links between trade policies and industrial productivity performance.
Trade policies and productivity change in semi-industrialized countries
export expansion;import substitution;rate of growth of output;total factor productivity growth;demand for consumer good;increases in factor input;ordinary least squares regression;Trade Policies;Trade Policy;gross output;output growth;manufacturing industry;import substitution policy;infant industry protection;output growth rate;domestic demand growth;productivity performance;export promotion policy;impact on productivity;high growth rate;rate of output;decomposition of growth;state of knowledge;cost and production;flexible functional form;reduction in production;capital goods import;share of capital;consumer goods sectors;sectoral growth rate;Growth and Trade;unit of output;infant industry argument;share of import;cost of production;economies of scale;sample standard deviation;process of adjustment;process of development;Production Possibility Frontier;productivity change;production function;electrical machinery;food processing;investment good;import liberalization;intermediate input;basic metal;labor input;foreign exchange;rank correlation;standard error;production environment;comprehensive treatment;heavy industry;scale economy;manufacturing sector;domestic supply;index number;empirical result;explanatory variable;supply response;factor inputs;competitive cost;black box;production process;positive impact;development of literature;transportation equipment;constant term;paper product;regression results;sample mean;domestic industry;determining growth;increasing growth;comparative advantage;industrial groups;comparative analysis;light industry;empirical literature;import share;imported inputs;
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Construction Industry, Common Carriers Industry, Food & Beverage Industry, General Manufacturing, Pulp & Paper Industry, Plastics & Rubber Industry, Trade Policy, International Trade and Trade Rules, Rules of Origin, Economic Growth, Business Cycles and Stabilization Policies, Trade and Multilateral Issues,
Off of Sr VP Dev Econ/Chief Econ (DECVP)
Official version of document (may contain signatures, etc)
Trade policies and productivity change in semi-industrialized countries (English). Washington, DC: World Bank http://documents.worldbank.org/curated/en/391341468334320940/Trade-policies-and-productivity-change-in-semi-industrialized-countries