Publication:
Productivity response to reduction in trade barriers: evidence from Turkish manufacturing plants

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Özler, Şule

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We examine the effects of trade policy changes on the evolution of productivity in the Turkish manufacturing industry. Plant level productivities are estimated for the 1983-1996 period following the procedure of Olley and Pakes. Industry averages indicate that productivity gains are largest in import-competing industries with highest gains reaching 8% per year during periods of rapid decline in protection rates. We find that productivity improvements resulting from declining protection rates are statistically significant and economically important, especially in import-competing sectors. More importantly, productivity improvements due to declining protection rates increase with the plant size.

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Springer

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Economics, International relations

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Review Of World Economics

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10.1007/s10290-009-0019-0

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