Effects of trade policy on total factor productivity
DOI:
https://doi.org/10.1590/S0101-41612003000200001Keywords:
Coalition, trade, technology, adoptionAbstract
This paper examines if trade policy can account for the difference in total factor productivity (TFP) across countries. A two-sector dynamic international-trade model is developed where technological progress is neutral and a coalition of workers can stop the adoption of new technologies. The key findings are the following: (i) With free trade, or tariff, the best technology is always used and TFP is always at its highest value. Under a quota, this is not always the case and TFP is generally below its highest value; (ii) even controlling for difference of skilled labor (or human capital), workers from the quota economy have smaller productivity than workers from the free trade economy.Downloads
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Published
01-06-2003
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Copyright (c) 2003 Arilton Teixeira
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How to Cite
Teixeira, A. (2003). Effects of trade policy on total factor productivity. Estudos Econômicos (São Paulo), 33(2), 217-247. https://doi.org/10.1590/S0101-41612003000200001