Dynamic Gains From Trade: Evidence From South Africa

This paper examines the empirical relationship between trade and total factor productivity (TFP) in South Africa. It uses (i) a time series approach where trade is defined in terms of aggregate outcomes, i.e., as the share of imports plus exports in GDP, and (ii) a cross sectional approach, where trade is defined in terms of trade policy, i.e., as actual trade protection across different manufacturing sectors. The results indicate that there is a significant positive relationship between trade and TFP growth both over time and across sectors.
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Volume/Issue: Volume 2000 Issue 045
Publication date: March 2000
ISBN: 9781451846461
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Topics covered in this book

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Business and Economics , Exports and Imports , Taxation - General , WP , TFP growth , tariff , trade , Openness , trade liberalization , growth , total factor productivity , tariff regime , TFP series , import tariff , trade policy orientation , tariff reduction , tariff line , time series , formula duty , trade policy variable , Tariffs , Trade policy , Imports , Africa

Summary

This paper examines the empirical relationship between trade and total factor productivity (TFP) in South Africa. It uses (i) a time series approach where trade is defined in terms of aggregate outcomes, i.e., as the share of imports plus exports in GDP, and (ii) a cross sectional approach, where trade is defined in terms of trade policy, i.e., as actual trade protection across different manufacturing sectors. The results indicate that there is a significant positive relationship between trade and TFP growth both over time and across sectors.