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Trade integration and within-plant productivity evolution in Chile

Publication Date
  • Economics
  • Wirtschaft
  • Trade Barriers
  • Plant Productivity
  • Firm Heterogeneity
  • Plant-Level Data
  • Jel Classification: F1
  • F4
  • O1
  • Economic Policy
  • Economic Sectors
  • Wirtschaftspolitik
  • Wirtschaftssektoren Und Marktstrukturen
  • Export
  • Import
  • Handelshemmnis
  • Handel
  • Produktivität
  • Wirtschaftsbeziehungen
  • Chile
  • Entwicklungsland
  • Export
  • Import
  • Trade Barrier
  • Commerce
  • Productivity
  • Economic Relations
  • Developing Country


We analyze the impact of trade integration on plant TFP using Chilean plant-level data (1982–1999) and 3-digit bilateral trade flows. Our contribution is to disentangle the impact of export and import barriers, estimated as border effects within a multilateral context. A fall in export barriers is positively correlated with plant productivity in traded sectors. The reduction of import barriers, however, can only be associated to productivity improvements in export-oriented sectors. In import-competing sectors a robust positive correlation shows up between plant productivity and protection. We then test several channels linking trade integration and firm productivity.

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