Department of Economics2024-11-0920091610-287810.1007/s10290-009-0019-0http://dx.doi.org/10.1007/s10290-009-0019-0https://hdl.handle.net/20.500.14288/13967We 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.EconomicsInternational relationsJournal Article1610-28862678260000099662