Cited by 1,573Global trade and economicsEconomic and Technological InnovationEconomic Growth and Productivity

The DOI matches its Crossref record; 162 of the 162 references it cites were found in a registry or an index; 8 of the 29 sources its claims cite were checked for support.

Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms

Open access
Bustos, Paula·2011·American Economic Review

Abstract

This paper studies the impact of a regional free trade agreement, MERCOSUR, on technology upgrading by Argentinean firms. To guide empirical work, I introduce technology choice in a model of trade with heterogeneous firms. The joint treatment of the technology and exporting choices shows that the increase in revenues produced by trade integration can induce exporters to upgrade technology. An empirical test of the model reveals that firms in industries facing higher reductions in Brazil's tariffs increase investment in technology faster. The effect of tariffs is highest in the upper-middle range of the firm-size distribution, as predicted by the model. (JEL F13, F15, O19, O24, O33).

Overview

Integrity signals

Registry

Crossref · 10.1257/aer.101.1.304

Cites

162 of 162 references verified0 citation errors · 0 not checkable

Statistics

Nothing to recompute.

Verification

Claims the paper makes

67 Own result · 57 Own interpretation · 32 Own method · 27 No basis given · 8 No full text of the sources · 6 Sources not found · 4 Partly supported · 1 Supported · 1 Supported so far · 1 Couldn’t confirm · accuracy not yet measured

Show all 103 claims

  • Probably not a substantial claim. 40
  • It may state two separate claims as one. 80
  • The quote only partly states this claim. 1
101 of 101
  • The authors state this as an assumption.

    The model assumes two symmetric countries and symmetric trade costs.

    “I consider the case of two symmetric countries engaging in bilateral trade liberalization.”
  • The authors state this as an assumption.

    Firm productivity is drawn from a known Pareto distribution.

    “Entrants then draw their productivity from a known Pareto cumulative distribution function g(φ) = 1 -φ -k with k > 1.”
  • The authors state this as an assumption.

    Consumer preferences take a CES form with elasticity of substitution greater than one.

    “Preferencesacross varieties have the standard CES form, with an elasticity of substitution σ = 1/(1 -ρ) > 1.”
  • The authors state this as an assumption.

    The marginal firm in the model is a nonexporter.

    “This is implicitly assumed in the zero profit condition for the marginal firm (equation ( 1)) used to derive equation (3).”
  • The paper relies on this without support.

    Other reforms in the same period did not have heterogeneous effects across industries that would confound the estimated tariff effects.

    “Still, a main potential problem is that other reforms carried out in the same period could have had heterogeneous effects on industries with different characteristics.”
  • The authors state this as an assumption.

    Firm size relative to the four-digit ISIC industry mean in 1992 is a proxy for initial productivity.

    “As a proxy for initial productivity, I use initial firm size in terms of (log) employment in primary school equivalents relative to the four-digit industry average, as detailed in online Appendix D.”
  • The paper relies on this without support.

    The initial level of Brazil's tariffs is negatively correlated with export status in 1992.

    “This is because the initial level of Brazil's tariffs is negatively correlated with export status in 1992.”
  • The authors state this as an assumption.

    The theoretical model treats the two countries symmetrically, with identical tariff changes for both.

    “The mapping of this prediction to the data is not straightforward, as the model considers a fully symmetric case where changes in tariffs are the same for both countries.”
  • The paper relies on this without support.

    Firm size is an imperfect proxy for productivity.

    “As mentioned above, this is not inconsistent with the model, as size is not a perfect measure of productivity, and the technology adoption cutoffs might differ across industries.”
  • The paper relies on this without support.

    Argentina's unilateral trade liberalization occurred before 1992.

    “This might be due to the fact that the changes in Argentina's tariffs with respect to the world were smaller, as unilateral trade liberalization took place before 1992.”
  • The paper relies on this without support.

    The benefit of adopting technology is proportional to revenues, while its cost is fixed.

    “The benefit of technology adoption is proportional to revenues while its cost is fixed.”
  • The authors state this as an assumption.

    For expected profits to be positive, the parameter restriction k > σ − 1 must hold.

    “Note that for expected profits to be positive we need to impose the parameter restriction: k > σ -1.”
12 of 12

Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

Each contradiction between two passages listed here was confirmed by an independent check.

2 of 2

Citations

Cites

Show all 121 references

Research works printed but not linked: 3

  1. Campbell Jorge, 1999, MERCOSUR Entre la Realidad y la Utopia, ed. Jorge Campbell, 123
  2. Roberts Mark J, 1997, American Economic Review, 87, 545
  3. Tybout James R, 2003, E. Kwan Choi, and James Harrigan, 388

Cited by

Sorted by citations

Items 501–600 of 1,573

Metadata

Authors
Bustos, P.
Affiliations
Universitat Pompeu Fabra (ES)
Corresponding author
Bustos, Paula
Venue
American Economic Review
Published
2011-02-01
Volume
101
Issue
1
Pages
304-340
ISSN
0002-8282 (ISSN-L)
OpenAlex
W2124933622
Cited by
1,552
References
121
Citations by year
2026: 85 · 2025: 101 · 2024: 117 · 2023: 115 · 2022: 119 · 2021: 109 · 2020: 94 · 2019: 91 · 2018: 98 · 2017: 88 · 2016: 88 · 2015: 96 · 2014: 95 · 2013: 86 · 2012: 85
FWCI
263.34
Type
journal article
Language
en
Open access
Locations
  • American Economic Review (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Repositori digital de la UPF (Universitat Pompeu Fabra) (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic and Technological Innovation
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Keywords
Mercosur, trade liberalization, technological upgrading, regional free trade agreements, exports, heterogeneous firms, tariff reduction, firm size, technology investment, Argentine firms, Brazil

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