File2-page175 - erence plant r Table 3 looks at aggregate...

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Pavcnik (2002) Openness and Economic Performance 8.2 Pavcnik (2002) Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants Effects of trade liberalization on productivity of domestic Frms indetermi- nate Using panel data on manufacturing plants in Chile over the 1979-1986 pe- riod ±irms with more than 10 employees get into manufacturing census – cen- sus covers a full universe of Frms 1979-1986 period of rapid trade liberalization in Chile Plants are characterised in term of trade orientation as being in the export oriented, import competing or non-traded goods sectors Exit plays a large part in the adjustment process Industry Level Evidence Productivity pr it is obtained by subtracting plants i ’s predicted output from its actual output at time t and then comparing it relative to a ref-
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Unformatted text preview: erence plant r Table 3: looks at aggregate productivity measures for each year Aggregate evidence suggests that the productivity of Chilean plants has changed after trade liberalization Aggregate productivity has increased by 19% over seven years: 6.6% due to increased productivity within plants and 12.7% due to relocation of re-sources from more to less efFcient producers Growth greatest in import competing and export oriented sectors and least in non-traded sectors Plant Level Evidence Industry level evidence suggests that plants belonging to different sectors with different trade orientations react differently after a trade liberaliza-tion episode Development Economics, LSE Summer School 2007 172...
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This note was uploaded on 12/29/2011 for the course ECO 307 taught by Professor Dublin during the Spring '10 term at SUNY Stony Brook.

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