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Productivity growth from an international trade perspective

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  • Ulf Lewrick
  • Lukas Mohler
  • Rolf Weder

Abstract

This paper presents a framework to assess the relative importance of three key sources of productivity growth that international trade research focuses on: (1) inter‐industry specialization; (2) intra‐industry reallocation of resources across heterogeneous firms; and (3) technological progress. We illustrate how to apply the framework by deciphering the productivity dynamics of the Swiss manufacturing industry. We find that intra‐industry reallocations are the most important source of growth in aggregate total factor productivity, spurred by the productivity growth of large, incumbent firms and the entry of new firms. Inter‐industry specialization and general technological progress, nevertheless, remain important supplementary sources of productivity growth.

Suggested Citation

  • Ulf Lewrick & Lukas Mohler & Rolf Weder, 2018. "Productivity growth from an international trade perspective," Review of International Economics, Wiley Blackwell, vol. 26(2), pages 339-356, May.
    • Handle: RePEc:bla:reviec:v:26:y:2018:i:2:p:339-356
    DOI: 10.1111/roie.12334
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    Cited by:

    1. Mathias Juust & Urmas Varblane, 2024. "Firm-Level Capabilities And Response To A Negative Export Shock: 2014 Russian Embargo On The West," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 145, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Hehua Zhao & Hongwen Chen & Ying Fang & Apei Song, 2022. "Transfer Characteristics of Embodied Carbon Emissions in Export Trade—Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    3. Jean-Marie Grether & Benjamin Tissot-Daguette, 2021. "Zoom in, zoom out: A shift-share analysis of productivity in Switzerland based on micro data," IRENE Working Papers 21-10, IRENE Institute of Economic Research.
    4. Gampfer, Benjamin & Geishecker, Ingo, 2015. "Endogenous competition exposure: China's rise, intra-industry and intra-firm reallocations," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112996, Verein für Socialpolitik / German Economic Association.

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