Trade Openness, Structural Change and Total Factor Productivity

Abizadeh, Sohrab; Pandey, Manish

doi:10.1080/10168730903372273

Cited by 26 publications

(13 citation statements)

References 19 publications

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“…Pavcnik (2002) has advocated positive impact of trade liberalization on productivity by means of efficient allocation of resources. Moreover, some other studies that come to similar conclusions (contemplating TFP growth) include Nishimizu and Robinson (1984), Urata and Yokota (1994), Jonsson and Subramanian (2000) and Abizadeh and Pandey (2009). Whereas, FDI serves as an important medium for access to international market, increased competition and promotion of international trade (OECD, 2008).…”

Section: Introductionmentioning

confidence: 86%

Total Factor Productivity Convergence in Developing Countries: Role of Technology Diffusion

Maryam

Jehan²

2018

South African J Economics

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In recent years, though total factor productivity (TFP) convergence phenomenon has gained tremendous importance yet further deliberations for identification of catalytic factors that can help developing countries to achieve their steady developmental paths, are under way. Against this backdrop, present study investigates the principal determinants of TFP convergence by employing data of 91 developing countries over the period 1960–2015 and with USA being the frontier country. In concordance with the existing literature, main focus remains on technology diffusion for the catch‐up process and is measured by means of trade openness (TO) and foreign direct investment (FDI) with introduction of their interaction terms. However, TFP is computed by incorporating the Growth Accounting Model while empirical results are drawn from the 2‐step GMM estimation technique. It is surfaced that though high degree of openness benefits TFP growth and convergence but FDI has a dominating role. Therefore, governments can play a competent role via unflagging efforts in ensuring that the right kind of policies are enacted, promoting trading activities and FDI flows.

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Section: Introductionmentioning

confidence: 86%

Total Factor Productivity Convergence in Developing Countries: Role of Technology Diffusion

Maryam

Jehan²

2018

South African J Economics

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“…The same has been observed by (Qineti, Rajcaniova and Matejkova, 2009) in the case of Slovakia. (Abizadeh and Pandey, 2009) have discovered that trade openness does not have a positive effect on factor productivity in agriculture, although it has a positive impact on an entire national economy.…”

Section: Discussionmentioning

confidence: 99%

“…Since the collected export data were initially given in current prices, to avoid evident distortion of comparison results, corresponding price indices were applied to time series of each country to express all export data in constant prices (as per 2010 year) 1 . It is obvious that the values provided above cannot be compared directly (due to the countries' sizes, population densities and corresponding sizes of their agricultural lands), these numbers will be recalculated with regard to a unit of core productive factors: per hectare of agricultural land, per worker employed in the agricultural sector and per million USD of fixed capital consumption.…”

Section: Export-measured Productivity Of Selected Agricultural Sectormentioning

confidence: 99%

Animal Husbandry Export Measures Productivity: What is the Position of the Czech Republic?

Rumánková¹,

Kuzmenko²,

Benešová³

et al. 2020

AOL

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Efficiency, productivity and competitiveness are important indicators of any production process. Speaking of agriculture and, in particular, animal husbandry in the light of sustainable development context, the values of these indicators become of special importance. Since adequate and efficient usage of disposable labour, land and capital can play a crucial role in obtaining and preserving higher efficiency and productivity levels, the natural question arises - does any relationship exist between mentioned production factors and revealed comparative advantage? The main aim of this research is to evaluate the relationship between export-measured productivity and comparative advantages in animal husbandry of selected European countries. The benchmark is provided in relation to the Czech Republic. To analyse productivity of agricultural and, more specifically, animal production in the European countries selected for the analysis (based on available balanced data incorporating the period from 2005 to 2017), a decision was made to trace export performance of these countries recalculated with regard to a unit of core productive factors, such as land, labour and capital. Based on the foreign trade indicators (Gruber Lloyd index, RCA index), cluster analysis was conducted, in which individual calculation was used as an input variable. Subsequently, hierarchical clustering and Ward´s method were used. The evidence from this study suggests that the revealed comparative advantage of the countries is not determined primarily by the level of export-based productivity. The relationship between these variables is rather weak and very often negative, which indicates that productivity indicators do not play a significant role in the overall competitiveness of the monitored countries.

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“…For instance, it is argued that goods sectors are more trade-intensive than services that in turn may cause the impact of trade openness on goods sectors to be stronger as compared to that on services, therefore considering that sectoral trade openness may bring out the differential impact of trade openness on each sector’s productivity better than aggregate trade openness (Park and Shin, 2010). Abizadeh and Pandey (2009), on the other hand, find that the impact of sectoral trade openness is higher on the productivity of services sector as compared to that of agriculture and industry in the context of 20 OECD member countries over the period 1980-2010.…”

Section: The Modelmentioning

confidence: 97%

Sectoral analysis of productivity in the developing and developed economies of Asia-Pacific

Dua

Garg

2019

IGDR

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Purpose The study aims to empirically investigate the trends and determinants of labour productivity of the two broad sectors –industry and services – and their components, namely, manufacturing and market services sectors, in the case of major developing and developed economies of Asia-Pacific over the period 1980-2014 and make a comparison thereof. Design/methodology/approach The study uses econometric methodology of panel unit root tests, panel cointegration and group-mean full modified ordinary least squares (FMOLS). Findings The study finds that while capital deepening, government size, institutional quality, productivity of the other sector and financial openness affect productivity of all the sectors significantly, the impact of human capital and trade openness varies across sectors in the case of developing economies. Furthermore, the impact of technological progress becomes significant in the post-liberalization reforms period in the developing economies. The study further finds that capital deepening, human capital, government size, institutional quality, productivity of the other sector, government size and trade openness are significant determinants of productivity of all sectors of developed economies under consideration. However, the impact of technological progress is stronger for manufacturing sector than services and its components. Furthermore, while both equity and debt liabilities (as measures of financial openness) influence sectoral productivity of industry and manufacturing sectors positively and significantly in case of developed economies, only equity liabilities have a significant influence on the productivity of developing economies. This may indicate existence of more developed financial markets in the case of developed economies. Originality/value The study identifies important structural differences in determinants of productivity both across sectors and across developing and developed economies of Asia-Pacific.

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Trade Openness, Structural Change and Total Factor Productivity

Cited by 26 publications

References 19 publications

Total Factor Productivity Convergence in Developing Countries: Role of Technology Diffusion

Total Factor Productivity Convergence in Developing Countries: Role of Technology Diffusion

Animal Husbandry Export Measures Productivity: What is the Position of the Czech Republic?

Sectoral analysis of productivity in the developing and developed economies of Asia-Pacific

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