Abstract

http://ssrn.com/abstract=1711988
 
 

References (47)



 
 

Citations (4)



 


 



Export Market Dynamics and Plant-Level Productivity: Impact of Tariff Reductions and Exchange Rate Cycles


John R. Baldwin


Statistics Canada - Microeconomic Analysis Division

Beiling Yan


Statistics Canada

June 25, 2010

Economic Analysis Research Paper Series No. 063

Abstract:     
This paper examines how trade liberalization and fluctuations in real exchange rates affect export-market entry/exit and plant-level productivity. It uses the experience of Canadian manufacturing plants over three separate periods that feature different rates of bilateral tariff reductions and differing movements in bilateral real exchange rates. The patterns of entry and exit responses as well as the productivity outcomes differ markedly in the three periods. Consistent with much of the recent literature, the paper finds that plants self-select into export markets - that is, more efficient plants are more likely to enter and less likely to exit export markets. The reverse also occurs: entrants to export markets improve their productivity performance relative to the population from which they originated and plants that stay in export markets do better than comparable plants that exited, lending support to the thesis that exporting boosts productivity. Finally, we find that overall market access conditions, including real exchange rate trends, significantly affect the extent of productivity gains to be derived from participating in export markets. In particular, the increase in the value of the Canadian dollar during the post-2002 period almost completely offset the productivity growth advantages that new export-market participants would otherwise have enjoyed.

Number of Pages in PDF File: 35

Keywords: tariff reduction, real exchange rate, export participation, productivity growth

JEL Classification: F1, F3, L1, O4

Accepted Paper Series


Download This Paper

Date posted: November 21, 2010  

Suggested Citation

Baldwin, John R. and Yan, Beiling, Export Market Dynamics and Plant-Level Productivity: Impact of Tariff Reductions and Exchange Rate Cycles (June 25, 2010). Economic Analysis Research Paper Series No. 063. Available at SSRN: http://ssrn.com/abstract=1711988

Contact Information

John R. Baldwin
Statistics Canada - Microeconomic Analysis Division ( email )
24 Floor - R.H.Coats Building
Tunney's Pasture
Ottawa, Ontaria K1A 0T6
Canada
613-951-8588 (Phone)
613-951-5403 (Fax)
Beiling Yan (Contact Author)
Statistics Canada ( email )
Ottawa, Ontario
Canada
613-951-5403 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 192
Downloads: 29
References:  47
Citations:  4

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.265 seconds