IDEAS home Printed from https://ideas.repec.org/a/oup/wbecrv/v14y2000i2p309-30.html
   My bibliography  Save this article

Trade Reform Dynamics and Technical Efficiency: The Peruvian Experience

Author

Listed:
  • Alam, Ila M Semenick
  • Morrison, Andrew R

Abstract

Markets around the world are becoming more competitive because of changing operating and regulatory environments. One such change--the loosening of trade restrictions--is a macroeconomic policy shift that should have a microeconomic impact on industrial efficiency. Specifically, competitive pressure should discipline or eliminate inefficient producers. This article explores whether or not there is such a dynamic link. It uses a previously unexploited data set to gauge the impact of the 1990 Peruvian reform on plant-level technical efficiency. The results support the argument that the degree of protection and the level of efficiency are inversely related. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Alam, Ila M Semenick & Morrison, Andrew R, 2000. "Trade Reform Dynamics and Technical Efficiency: The Peruvian Experience," The World Bank Economic Review, World Bank, vol. 14(2), pages 309-330, May.
    • Handle: RePEc:oup:wbecrv:v:14:y:2000:i:2:p:309-30
    as

    Download full text from publisher

    File URL: http://www.worldbank.org/research/journals/wber/revmay00/pdf/Article4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sebastian Edwards, 1994. "Trade and Industrial Policy Reform in Latin America," NBER Working Papers 4772, National Bureau of Economic Research, Inc.
    2. Pack, Howard, 1988. "Industrialization and trade," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 9, pages 333-380, Elsevier.
    3. Liu, Lili, 1993. "Entry-exit, learning, and productivity change Evidence from Chile," Journal of Development Economics, Elsevier, vol. 42(2), pages 217-242, December.
    4. Tybout, James & de Melo, Jamie & Corbo, Vittorio, 1991. "The effects of trade reforms on scale and technical efficiency : New evidence from Chile," Journal of International Economics, Elsevier, vol. 31(3-4), pages 231-250, November.
    5. Tybout, James R. & Westbrook, M. Daniel, 1995. "Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries," Journal of International Economics, Elsevier, vol. 39(1-2), pages 53-78, August.
    6. Havrylyshyn, Oli, 1990. "Trade Policy and Productivity Gains in Developing Countries: A Survey of the Literature," The World Bank Research Observer, World Bank, vol. 5(1), pages 1-24, January.
    7. Mark J. Roberts & James R. Tybout, 1991. "Size Rationalization and Trade Exposure in Developing Countries," NBER Chapters, in: Empirical Studies of Commercial Policy, pages 169-200, National Bureau of Economic Research, Inc.
    8. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    9. Bond, Eric W., 1986. "Entrepreneurial ability, income distribution, and international trade," Journal of International Economics, Elsevier, vol. 20(3-4), pages 343-356, May.
    10. Handoussa, Heba & Nishimizu, Mieko & Page, John Jr., 1986. "Productivity change in Egyptian public sector industries after the opening, 1973-1979," Journal of Development Economics, Elsevier, vol. 20(1), pages 53-73.
    11. Page, John M, Jr, 1980. "Technical Efficiency and Economic Performance: Some Evidence from Ghana," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 319-339, July.
    12. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," The World Bank Economic Review, World Bank, vol. 6(2), pages 189-211, May.
    13. Martin, John P & Page, John M, Jr, 1983. "The Impact of Subsidies on X-Efficiency in LDC Industry: Theory and an Empirical Test," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 608-617, November.
    14. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    15. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
    16. Rodrik, Dani, 1995. "Political economy of trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 28, pages 1457-1494, Elsevier.
    17. Alam, Ila M Semenick & Sickles, Robin C, 2000. "Time Series Analysis of Deregulatory Dynamics and Technical Efficiency: The Case of the U.S. Airline Industry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 203-218, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zuniga-Gonzalez, C.A., 2010. "Impacto del Consumo de substancias agotadoras de la capa de ozono en el PIBA Centroamericano: Un Input orientado del Índice DEA de Malmquist [Consumption Ozone-Depleting Substances Impact in Centra," MPRA Paper 110951, University Library of Munich, Germany, revised 18 Nov 2010.
    2. M. Parameswaram, 2002. "Economic reforms and technical efficiency: Firm level evidence from selected industries in India," Centre for Development Studies, Trivendrum Working Papers 339, Centre for Development Studies, Trivendrum, India.
    3. Anthony Ilegbinosa Imoisi, 2018. "Is Trade Openness Suitable for Growth of the Nigerian Manufacturing Sector? An Autoregressive Distributed Lag Approach," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(2), pages 71-82, June.
    4. Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.
    5. Barine Michael Nwidobie, 2014. "Growth in Nigeria’s Non-Oil Export Finance and Non-Oil Export Performance: A Correlational Analysis," International Journal of Business and Social Research, LAR Center Press, vol. 4(2), pages 31-39, February.
    6. Deb Kusum Das, 2007. "Trade Liberalization and Industrial Productivity: An Assessment of Developing Country Experiences," Working Papers id:1009, eSocialSciences.
    7. Barine Michael Nwidobie, 2014. "Growth in Nigeria’s Non-Oil Export Finance and Non-Oil Export Performance: A Correlational Analysis," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(2), pages 31-39, February.
    8. Tóth, József & Gál, Péter, 2014. "Is the New Wine World more efficient? Factors influencing technical efficiency of wine production," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 116(2), pages 1-5, August.
    9. Ricardo A. López, 2005. "Trade and Growth: Reconciling the Macroeconomic and Microeconomic Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 19(4), pages 623-648, September.
    10. Rim BEN AYED MOUELHI, 2007. "The Impact Of Trade Liberalization On Tunisian Manufacturing: Structure, Performance And Employment," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 87-114.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March.
    2. Liu, Lili, 1991. "Entry-exit, learning, and productivity change : evidence from Chile," Policy Research Working Paper Series 769, The World Bank.
    3. Dani Rodrik, 1993. "Trade and Industrial Policy Reform in Developing Countries: A Review of Recent Theory and Evidence," NBER Working Papers 4417, National Bureau of Economic Research, Inc.
    4. Deb Kusum Das, 2007. "Trade Liberalization and Industrial Productivity: An Assessment of Developing Country Experiences," Working Papers id:1009, eSocialSciences.
    5. Tybout, James R., 1991. "Researching the trade - productivity link : new directions," Policy Research Working Paper Series 638, The World Bank.
    6. Fernandes, Ana M., 2007. "Trade policy, trade volumes and plant-level productivity in Colombian manufacturing industries," Journal of International Economics, Elsevier, vol. 71(1), pages 52-71, March.
    7. Jayanthakumaran, Kankesu, 2002. "The Impact of Trade Liberalisation on Manufacturing Sector Performance in Developing Countries: A Survey of the Literature," Economics Working Papers wp02-07, School of Economics, University of Wollongong, NSW, Australia.
    8. Roberto Alvarez & J. Rodrigo Fuentes, 2006. "Trade Reforms and Manufacturing Industry in Chile," Palgrave Macmillan Books, in: Patricio A. Aroca & Geoffrey J. D. Hewings (ed.), Structure and Structural Change in the Chilean Economy, chapter 4, pages 71-94, Palgrave Macmillan.
    9. Saon Ray, 2014. "What Explains the Productivity Decline in Manufacturing in the Nineties in India?," Working Papers id:6280, eSocialSciences.
    10. Benjamin Nancy & Michael Ferrantino, 2001. "Trade Policy and Productivity Growth in OECD Manufacturing," International Economic Journal, Taylor & Francis Journals, vol. 15(4), pages 95-115.
    11. Hassan, M. Kabir & Isik, Ihsan & Mamun, Abdullah, 2010. "Trade liberalization and industry performance in Bangladesh," Journal of Policy Modeling, Elsevier, vol. 32(3), pages 399-417, May.
    12. Deb Kusum Das, 2016. "Trade Policy and Manufacturing Performance: Exploring the Level of Trade Openness in India’s Organized Manufacturing in the Period 1990-2010," Working Papers id:9073, eSocialSciences.
    13. Nina Pavcnik, 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 245-276.
    14. Tarlok Singh, 2010. "Does International Trade Cause Economic Growth? A Survey," The World Economy, Wiley Blackwell, vol. 33(11), pages 1517-1564, November.
    15. Soderbom, Mans & Teal, Francis, 2004. "Size and efficiency in African manufacturing firms: evidence from firm-level panel data," Journal of Development Economics, Elsevier, vol. 73(1), pages 369-394, February.
    16. Trabajo, Frances Myra, 1994. "Agricultural Machinery Industry," Research Paper Series RPS 1994-04, Philippine Institute for Development Studies.
    17. Hay, Donald A, 2001. "The Post-1990 Brazilian Trade Liberalisation and the Performance of Large Manufacturing Firms: Productivity, Market Share and Profits," Economic Journal, Royal Economic Society, vol. 111(473), pages 620-641, July.
    18. L. ALAN WINTERS & NEIL McCULLOCH & ANDREW McKAY, 2015. "Trade Liberalization and Poverty: The Evidence So Far," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 14, pages 271-314, World Scientific Publishing Co. Pte. Ltd..
    19. Ricardo A. López, 2005. "Trade and Growth: Reconciling the Macroeconomic and Microeconomic Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 19(4), pages 623-648, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:14:y:2000:i:2:p:309-30. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/wrldbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.