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Lourenco S. Paz
 
''Trade liberalization and inter-industry productivity spillovers: a dynamic spatial panel approach''
( 2013, Vol. 33 No.3 )
 
 
The use of trade liberalization to enhance manufacturing productivity has been a commonly applied policy in several developing countries since the 1980s. This paper proposes a new methodology to estimate the inter-industry productivity spillovers that may occur in such reforms. The findings from a study of the Brazilian trade liberalization episode (1989-1998) indicate that inter-industry productivity spillovers exist, are positive, and account for 70% of the increase in productivity that results from a reduction in import tariffs.
 
 
Keywords: productivity, spatial panel econometrics, spillovers, trade liberalization, Brazil, Input-Output matrix
JEL: F1 - Trade: General
L6 - Industry Studies: Manufacturing: General
 
Manuscript Received : May 03 2013 Manuscript Accepted : Sep 17 2013

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