Trade liberalization and productivity growth in Australian manufacturing industries

2002 ◽  
Vol 30 (2) ◽  
pp. 170-185 ◽  
Author(s):  
Renuka Mahadevan
Author(s):  
Mike Hsu

In this paper, I address two questions: (1) Does reducing tariffs for manufacturing inputs affect productivity in service industries? (2) Does the effect of input trade liberalization differ for importers in service and manufacturing industries? To answer these questions, I used an establishment-level survey of Uruguayan service industries from 1998 to 2005, a period in which the country reduced its tariffs on manufactured products. I found that service establishments that import inputs from abroad experience a larger increase in productivity relative to non-importers when input tariffs are reduced. Furthermore, the effects of trade liberalization are as significant in the service industries as in manufacturing.


2014 ◽  
Vol 14 (03n04) ◽  
pp. 467-485 ◽  
Author(s):  
Lionel Bopage ◽  
Kishor Sharma

This paper contributes to the ongoing debate about the effects of trade liberalization on productivity performance of the Australian passenger motor vehicle industry, which has experienced significant liberalization over the years. Our analysis indicates that trade liberalization had a negative impact on productivity growth, at least in the immediate post-liberalization period. Empirical results suggest that economies of scale and tariff protection improve productivity, while industry assistance (such as the local content and duty drawback schemes and production subsidies) retards productivity. Policy implications of these findings are that there are dividends in terms of improved productivity by encouraging economies of scale, providing tariff protection and lowering industry assistance.


2012 ◽  
Vol 57 (02) ◽  
pp. 1250012 ◽  
Author(s):  
FARZANA MUNSHI

This paper provides panel data evidence on trade liberalization and wage inequality in Bangladesh. Estimates from a dynamic model for five major manufacturing industries spanning the 1975–2002 period suggest that the effect of increased openness to trade is associated with a decrease in wage inequality. The result is in line with the theoretical prediction in that greater openness is expected to reduce wage inequality in developing countries.


2018 ◽  
Vol 10 (8) ◽  
pp. 2711 ◽  
Author(s):  
Sinwoo Lee ◽  
Dong-Woon Noh ◽  
Dong-hyun Oh

This study measures and decomposes green productivity growth of Korean manufacturing industries between 2004 and 2010 using the Malmquist-Luenberger productivity index. We focus on differences in the measures of productivity growth by distinguishing carbon emissions from either end-user industries or the electricity generation industry. Empirical results suggest three main findings. First, the efficiency of total emissions is higher than that of direct emissions except for the shipbuilding industry. Second, green productivity in the manufacturing sector increased during the study period. Finally, green productivity depends on the indirect emissions of each industry. These results indicate that policymakers need to deliberately develop policy tools for mitigating carbon emissions of the manufacturing industrial sectors based on our empirical findings.


Author(s):  
Michael Landesmann ◽  
Neil Foster-McGregor

Trade and the integration of countries into the global economy is one of the main forces shaping the structural composition of economies, an effect which in turn is expected to impact upon productivity and growth. Structural change can be restrained or reinforced by international trade. This chapter reviews the theory on the relationship between trade and trade liberalization and both structural change and growth, from the contributions of Adam Smith to the more recent new new trade theory beginning with the work of Melitz. The chapter further discusses the existing empirical evidence on the relationship between trade and structural change, before concluding by presenting evidence on the impact of trade liberalization on productivity growth for a broad sample of countries, further decomposing the effect into an effect due to structural change and an effect due to within sector productivity developments.


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