International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries
Author:
Ehsan U. Choudhri null

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Ms. Dalia S Hakura
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The paper estimates an empirical relation based on Krugman’s ‘technological gap’ model to explore the influence of the pattern of international trade and production on the overall productivity growth of a developing country. A key result is that increased import competition in medium-growth (but not in low- or high-growth) manufacturing sectors enhances overall productivity growth. The authors also find that a production-share weighted average of (technological leaders’) sectoral productivity growth rates has a significant effect on the rate of aggregate productivity growth.
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