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Trade, Productivity and Institutional Quality: Issues and Empirics

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dc.creator Martínez-Zarzoso, Inmaculada
dc.creator Doyle, Eleanor
dc.date 2007
dc.date.accessioned 2013-10-16T07:07:17Z
dc.date.available 2013-10-16T07:07:17Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19876
dc.identifier ppn:56090679X
dc.identifier RePEc:zbw:gdec07:6544
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19876
dc.description We estimate the relationship between productivity and trade for a panel of countries over the period 1980 to 2000 using instrumental-variables estimation of a productivity equation. We note that some estimates of productivity gains attributed to trade capture instead the roles of institutions and geography. The endogeneity of trade and institutional quality is accounted for by using instruments. We extend the Frankel and Romer (1999) specification, using real openness to measure trade (following Alcala and Ciccone, 2004), which allows for identification of channels through which trade and production scale affect productivity. The trade instrument is based on a ?theoretically motivated? gravity equation. The instruments for institutional quality come from Gwartney, Holcombe and Lawson (2004). Contrary to Alcala and Ciccone, our results suggest no robust relationship between real openness and labour productivity in the 1980s. Conversely, the relationship between productivity and real openness appears to be robust from 1990 onwards and similarly in the case of institutional quality. We also find evidence implying that countries with low-quality institutions are also able to benefit from openness to trade.
dc.language eng
dc.publisher
dc.relation Proceedings of the German Development Economics Conference, Göttingen 2007 / Verein für Socialpolitik, Research Committee Development Economics 21
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject F14
dc.subject F43
dc.subject O40
dc.subject ddc:330
dc.title Trade, Productivity and Institutional Quality: Issues and Empirics
dc.type doc-type:conferenceObject


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