TRADE LIBERALIZATION AND FIRM PRODUCTIVITY: ESTIMATION METHODS MATTER.

In this paper, we show that the relationship between trade liberalization and firm productivity is sensitive to the method used to estimate the production function. We estimate the productivity of Colombian manufacturing plants using the methods of Levinsohn and Petrin, Ackerberg et al., and Gandhi...

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Publicado en:Economic Inquiry Vol. 57; no. 3; pp. 1272 - 1284
Autores principales: Kealey, John, Pujolas, Pau S., Sosa‐Padilla, César
Formato: Artículo
Publicado: Wiley-Blackwell Jul2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: TRADE LIBERALIZATION AND FIRM PRODUCTIVITY: ESTIMATION METHODS MATTER.
      aug:
        au:
          Kealey, John
          Pujolas, Pau S.
          Sosa‐Padilla, César
        affil:
          Researcher, Department of Economics, McMaster University, Hamilton ON L8S4M4, Canada
          Professor, Department of Economics, McMaster University, Hamilton ON L8S4M4, Canada
          Professor, Department of Economics, University of Notre Dame, Notre Dame IN 46556
      su:
        International trade
        Production (Economic theory)
        Business enterprises
        Free trade
        Business expansion
      sug:
        subj:
          International trade
          Production (Economic theory)
          Business enterprises
          International Trade Financing
          Free trade
          Business expansion
      ab: In this paper, we show that the relationship between trade liberalization and firm productivity is sensitive to the method used to estimate the production function. We estimate the productivity of Colombian manufacturing plants using the methods of Levinsohn and Petrin, Ackerberg et al., and Gandhi et al. and at times come to surprisingly different conclusions about firm productivity growth after the liberalization. Results from a growth decomposition exercise and from a quantile regression model reinforce the dissimilarity of results across methods.
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    language: English
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