Work

Global productivity distribution and trade liberalisation: evidence from processed food industries

Year: 2008

Type: article

Abstract: In this study, we test the hypothesis that an industry's average productivity increases with liberalised trade in the context of processed food industries. Furthermore, we examine the resulting cross-country resource and market share reallocation in these industries. For this purpose, we employ a kernel density estimator to approximate the global productivity distribution in five major processed food industries for every period between 1993 and 2000. We find that the mean and alternative percentiles of the global productivity distribution shift to the right with liberalised international trade. Moreover, countries with faster productivity growth than the global average benefit from trade liberalisation by acquiring a larger share of global markets and resources.

Source: European Review of Agricultural Economics

DOI: 10.1093/erae/jbn034

Authors: J. Ruan, M. Gopinath

Institution: Oregon State University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Zero hunger

Open Access status: green

Funder: Oregon State University