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

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-...

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Bibliographic Details
Published inIMF staff papers Vol. 47; no. 1; pp. 30 - 53
Main Authors Choudhri, Ehsan U., Hakura, Dalia S.
Format Journal Article
LanguageEnglish
Published Washington International Monetary Fund 01.01.2000
Palgrave Macmillan
SeriesIMF Staff Papers
Subjects
Developing countries
Economic growth
Economic models
Economic theory
Human capital
Imports
International trade
LDCs
Linear regression
Manufacturing industries
Productivity
Productivity growth
Ratios
Regression analysis
Studies
Technology transfer
Trade development
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Summary: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.
ISSN:1020-7635
2041-4161
1564-5150
2041-417X
DOI:10.2307/3867624