This paper utilizes an instrumental variables approach to investigate the relationship between growth in total factor productivity and growth in imports and exports. Empirical models are based on a sample of Census years covering the period 1977–1992, with 1986 substituted for Census year 1987. The most important finding is that export growth positively impacts growth in total factor productivity for the pooled model and for every year of the sample. Growth in imports has a positive impact on TFP for the pooled model and in two of four sample years.
Review of Industrial Organization – Springer Journals
Published: Oct 3, 2004
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