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Trade liberalization and the dimensions of efficiency change in Mexican manufacturing industries
Open accessAbstract
Did Mexico's recent trade liberalization generate productivity gains? We find that average costs fell in most industries, with tradeable goods producers registering the largest reductions. Among importables, these cost reductions trace partly to improvements in relative productivity. Among exportables, they are due to favorable changes in relative prices, probably because imported intermediate goods became cheaper. Gains due to scale economy exploitation were minor and were not correlated with increases in foreign competition. Hence the results cast some doubt on simulation studies of trade liberalization that stress scale effects as a major source of efficiency gain.
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Cites
On the mechanics of economic development
Lucas, R. E. (1988) · Journal of Monetary Economics · doi:10.1016/0304-3932(88)90168-7 · Cited by 24,085
Cited by
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Melitz, M. (2002) · doi:10.3386/w8881 · Cited by 2,996
Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco
Clerides, S. K., Lach, S., & Tybout, J. R. (1998) · The Quarterly Journal of Economics · doi:10.1162/003355398555784 · Cited by 2,272
Self-citationTrade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants
Pavcnik, N. (2002) · The Review of Economic Studies · doi:10.1111/1467-937x.00205 · Cited by 1,777
Trade Liberalization and Poverty: The Evidence So Far
Winters, L. A., McCulloch, N., & McKay, A. (2004) · Journal of Economic Literature · doi:10.1257/002205104773558056 · Cited by 1,085
Exporting raises productivity in sub-Saharan African manufacturing firms
Van Biesebroeck, J. (2005) · Journal of International Economics · doi:10.1016/j.jinteco.2004.12.002 · Cited by 1,078
Metadata
- Authors
- Tybout, J. R., & Westbrook, M. D.
- Venue
- Journal of International Economics
- Publisher
- Elsevier BV
- Published
- 1995-08
- Volume
- 39
- Issue
- 1-2
- Pages
- 53-78
- ISSN
- 0022-1996 (ISSN-L)
- OpenAlex
- W2082626636
- Cited by
- 489
- References
- 1
- FWCI
- 26.78
- Type
- journal article
- Language
- en
- Open access
- hybrid
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