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Trade policy and input liberalization: The effect on Egyptian firms’ productivity

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  • Inmaculada Martínez Zarzoso
  • Mona Said
  • Chahir Zaki

Abstract

This paper explores the link between trade liberalization and firms’ performance in Egypt combining macro and micro data. Using the Economic Census of Egypt 2013, we examine the association between tariffs and non‐tariffs measures (NTM) imposed on intermediate input sand total factor productivity (TFP). In a first step TFP is estimated as the residual of a Cobb‐Douglas/Translog production function and in thesecond, TFP is regressed on weighted tariffs and NTM imposed on intermediate inputs. Egyptian input‐output tables are used to construct the weights. Our main findings show a positive and significant association between imported inputs and value‐added and a significantly negative relationship between tariffs and TFP.

Suggested Citation

  • Inmaculada Martínez Zarzoso & Mona Said & Chahir Zaki, 2021. "Trade policy and input liberalization: The effect on Egyptian firms’ productivity," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1305-1325, August.
    • Handle: RePEc:bla:rdevec:v:25:y:2021:i:3:p:1305-1325
    DOI: 10.1111/rode.12787
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