The Effects of Trade Reforms on Scale and Technical Efficiency

James R. Tybout · Jaime de Mélo · Vittorio Fischer Corbo

63 citations0/0 files storedWorld Scientific Studies in International Economics

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Global trade and economics Economic Growth and Productivity Efficiency Analysis Using DEA

Abstract

This paper analyzes the changes in industrial sector performance that accompanied Chile's dramatic trade liberalization of the 1970s. Comparisons of pre- and post-liberalization manufacturing census data reveal little productivity improvement overall. However, adverse macro conditions may have masked the positive effects of trade reforms: industries undergoing relatively large reductions in protection experienced relatively large improvements in average efficiency levels, and relatively large reductions in cross-plant efficiency dispersion. These conclusions are based on maximum likelihood technology estimators that deal with measurement error and incomplete observations.

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References

1957The Measurement of Productive Efficiency 1980A survey of frontier production functions and of their relationship to efficiency measurement 1966Specification and Estimation of Cobb-Douglas Production Function Models 1993Frontier Production Functions 1979Foreign trade regimes and economic development 1988EXPORT-PROMOTING TRADE STRATEGY 1985Reforms and macroeconomic adjustments in Chile during 1974–1984 1988Industrialization and trade

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