The effects of trade reforms on scale and technical efficiency. New evidence from Chile

James Tybout, Jamie de Melo, Vittorio Corbo

Research output: Contribution to journalArticle

102 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)231-250
Number of pages20
JournalJournal of International Economics
Volume31
Issue number3-4
DOIs
StatePublished - Nov 1991

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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