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Does Trade Increase Total Factor Productivity: Cointegration Evidence for Chile

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In this study, we examine the long-run impact of capital goods imports, exports of manufactured and primary goods on total factor productivity in Chile. Using the integration and cointegration techniques of Kapetanios (2005), Pesaran, Shin, and Smith (2001), Stock (1987), and Saikkonen (1991) we find a long-run relationship between these variables. All in all, our estimation results provide evidence for the existence of productivity-enhancing effects of capital goods imports and manufactured exports and of productivity-limiting effects of primary exports.

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  • Dierk Herzer, 2005. "Does Trade Increase Total Factor Productivity: Cointegration Evidence for Chile," Ibero America Institute for Econ. Research (IAI) Discussion Papers 115, Ibero-America Institute for Economic Research.
    • Handle: RePEc:got:iaidps:115
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    Cited by:

    1. German Hector Gonzalez & Fernando Andres Delbianco, 2011. "Apertura y productividad total de los factores: análisis de la contemporaneidad en los quiebres estructurales para América Latina y el Caribe," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 26(1), pages 53-81, Junio.
    2. Dierk Herzer, 2005. "Trade composition and total factor productivity: Evidence for Chile," Ibero America Institute for Econ. Research (IAI) Discussion Papers 116, Ibero-America Institute for Economic Research.

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    More about this item

    Keywords

    Trade; trade composition; productivity; cointegration;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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