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| Author: | Fadinger, H. Fleiss, P. |
| Title: | Trade and sectoral productivity |
| Journal: | Economic Journal
2011 : SEP, VOL. 121:555, p. 958-989 |
| Index terms: | productivity mathematical models r&d skilled workers manufacturing industry |
| Language: | eng |
| Abstract: | Cross-country variations in sectoral total factor productivity (TFP) are essential in Ricardian trade theory and in many growth and development models, but the knowledge of the magnitude and attributes of cross-country differences in sectoral TFP is limited. This study contributes to this by demonstrating how sectoral TFP differences can be backed out from bilateral trade data using a hybrid Ricardo-Heckscher-Ohlin model, allowing to overcome the data problems that constrained prior research and to provide a comparable sectoral productivity set for 24 manufacturing sectors in over 60 countries at all development stages. Our results indicate that TFP differences in manufacturing sectors between rich and poor countries are substantial and much more pronounced in skilled labour and R&D intensive sectors. |
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