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Trade policy and input liberalization: The effect on Egyptian firms’ productivity
Author(s) -
Martínez Zarzoso Inmaculada,
Said Mona,
Zaki Chahir
Publication year - 2021
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12787
Subject(s) - total factor productivity , economics , productivity , macro , production (economics) , free trade , liberalization , value (mathematics) , econometrics , international economics , international trade , macroeconomics , statistics , market economy , mathematics , computer science , programming language
This paper explores the link between trade liberalization and firms’ performance in Egypt combining macro and micro data. Using the Economic Census of Egypt 2013, we examine the association between tariffs and non‐tariffs measures (NTM) imposed on intermediate input sand total factor productivity (TFP). In a first step TFP is estimated as the residual of a Cobb‐Douglas/Translog production function and in thesecond, TFP is regressed on weighted tariffs and NTM imposed on intermediate inputs. Egyptian input‐output tables are used to construct the weights. Our main findings show a positive and significant association between imported inputs and value‐added and a significantly negative relationship between tariffs and TFP.