Trade Liberalization . . . A Panel Study of the Mexican Manufacturing Industry
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چکیده
In recent y ears there has been a revival of interest in the trade-growth nexus. A number of authors have suggested that regional economic integration and liberalization of international trade are likely to have positive eects not only on productivity levels but also on long-term productivity growth rates in developing countries. Using a panel of Mexican manufacturing industries, this paper examines several alternative mechanisms through which trade contributes positively to productivity levels and growth rates. Special attention is paid to the comprehensive trade liberalization policies implemented in Mexico after 1986. The results indicate that productivity growth is signicantly correlated with the share of imported intermediate inputs in sectoral output. Reductions in rates of protection are found to have signicant positive eects on sectoral productivity levels. The estimates also suggest that after liberalization increasing share of exports in total output increased average productivity level by about 5 percent. However, the eects of trade liberalization on long-term productivity growth rates are found to be statistically insignicant. 1 I wish to thank Erwin Klein, Lars Osberg, and two referees for very helpful comments, and Flor Brown and Enrique Dussel Peters for their help in obtaining the data. However, the usual disclaimer applies. Financial support from Dalhousie University Research Grant is gratefully acknowledged.
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