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International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries

Author

Listed:
  • Ehsan U. Choudhri
  • Ms. Dalia S Hakura

Abstract

The paper estimates an empirical relation based on Krugman’s ‘technological gap’ model to explore the influence of the pattern of international trade and production on the overall productivity growth of a developing country. A key result is that increased import competition in medium-growth (but not in low- or high-growth) manufacturing sectors enhances overall productivity growth. The authors also find that a production-share weighted average of (technological leaders’) sectoral productivity growth rates has a significant effect on the rate of aggregate productivity growth.

Suggested Citation

  • Ehsan U. Choudhri & Ms. Dalia S Hakura, 2000. "International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries," IMF Working Papers 2000/017, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/017
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    Keywords

    WP; Productivity Growth; Trade Liberalization; Technological Gap; TFP growth rate; trade variable; trade effect; trade ratio; technology lag; s TFP growth; gap in a sector; growth performance; trade index; productivity gap; Productivity; Total factor productivity; Imports; Technology transfer; East Asia; Middle East; North Africa; Sub-Saharan Africa; South Asia;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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