Dynamic Gains From Trade: Evidence From South Africa

ByArvind Subramanian, Gunnar Jonsson

March 1, 2000

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the empirical relationship between trade and total factor productivity (TFP) in South Africa. It uses (i) a time series approach where trade is defined in terms of aggregate outcomes, i.e., as the share of imports plus exports in GDP, and (ii) a cross sectional approach, where trade is defined in terms of trade policy, i.e., as actual trade protection across different manufacturing sectors. The results indicate that there is a significant positive relationship between trade and TFP growth both over time and across sectors.

Subject: Imports, International trade, Production, Tariffs, Taxes, Total factor productivity, Trade liberalization, Trade policy

Keywords: Africa, formula duty, growth, import tariff, Imports, Openness, tariff, tariff line, tariff reduction, tariff regime, Tariffs, TFP growth, TFP series, time series, total factor productivity, trade, trade liberalization, Trade policy, trade policy orientation, trade policy variable, WP

Pages:
32
Volume:
2000
DOI:
https://doi.org/10.5089/9781451846461.001
Issue:
045
Series:
Working Paper No. 2000/045
Stock No:
WPIEA0452000
ISBN:
9781451846461
ISSN:
1018-5941

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