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Productivity and openness: firm level evidence in Brazilian manufacturing industries

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  • Wenjun Liu
  • Shoji Nishijima

Abstract

This study investigates the productivity of Brazilian manufacturing industries, particularly addressing the influence of liberalization on productivity. We first calculate total factor productivity (TFP) by estimating the stochastic frontier production function and the inefficiency determination equation simultaneously. Then TFP growth rates are regressed on openness-related variables and other firm characteristics. The results show that firm openness to the world is a crucial determinant of their productivity. Data used for this study were obtained from the Investment Climate Survey, provided by the World Bank. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Wenjun Liu & Shoji Nishijima, 2013. "Productivity and openness: firm level evidence in Brazilian manufacturing industries," Economic Change and Restructuring, Springer, vol. 46(4), pages 363-384, November.
    • Handle: RePEc:kap:ecopln:v:46:y:2013:i:4:p:363-384
    DOI: 10.1007/s10644-012-9131-6
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    More about this item

    Keywords

    TFP; Liberalization; Brazil; Stochastic frontier analysis; JEL Classification; D21; O12; O54;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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