Work

Trade Liberalization, Structural Change and Productivity Growth: Evidence From Mongolia

Year: 2024

Type: article

Abstract: We analyze how Mongolia's trade openness affects labor market structural changes and its contribution to manufacturing productivity growth. Our findings indicate that reducing import tariffs on intermediate goods resulted in a 1.70% shift of labor from state-owned enterprises (SOEs) to non-SOEs from 2001 to 2015, accounting for 2.96% of intra-industry labor flow. Intermediate import tariff reduction decreased costs for non-SOEs and alleviated financing constraints. Additionally, the shift in employment ownership due to trade openness improved resource allocation efficiency, explaining 3.51% of production efficiency growth from inter-enterprise factor allocation and 0.81%-1.12% of overall manufacturing productivity growth. This highlights its role as a key channel for enhancing productivity through trade openness.

Source: International Journal of Innovative Technologies in Social Science

DOI: 10.31435/ijitss.4(44).2024.2962

Authors: Bolor Khurelchuluun, Siqintana Bao

Institutions: Zhongnan University of Economics and Law, Inner Mongolia Academy of Agricultural & Animal Husbandry Sciences

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, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $100