Trade and Productivity Growth: Dynamic Panel Study on Selected Asian Countries

Gulasekaran Rajaguru, Shandre M Thangavelu

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Abstract

The paper studies the impact of trade variables of exports and imports on productivity growth in selected Asian countries using a dynamic panel VAR. The panel unit roots and co-integration techniques are utilized to determine the proper time-series properties of the model. As oppose to studies which suggest export-led productivity growth, we found statistically significant import-led productivity growth. In fact, we found negative impact of exports on labor productivity. The result on the positive impact of imports on productivity growth is robust to both labor productivity and total factor productivity measures. This suggests that imports as opposed to exports play an important role in increasing productivity and transferring foreign technology onto the domestic economy. Further, we also found bi-directional effects of productivity on imports.
Original languageEnglish
Number of pages24
Publication statusPublished - 2002
Externally publishedYes
EventThe Eighth International Convention of the East Asian Economic Association: Where are East Asia’s Economies Heading? - J.W. Marriott Hotel, Kuala Lumpur, Kuala Lumpur, Malaysia
Duration: 4 Nov 20025 Nov 2002
Conference number: 8
http://www.eaeaweb.com/3-eaea-conventions.html (EAEA Conventions)

Conference

ConferenceThe Eighth International Convention of the East Asian Economic Association
Abbreviated titleEAEA
CountryMalaysia
CityKuala Lumpur
Period4/11/025/11/02
Internet address

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    Rajaguru, G., & Thangavelu, S. M. (2002). Trade and Productivity Growth: Dynamic Panel Study on Selected Asian Countries. Paper presented at The Eighth International Convention of the East Asian Economic Association, Kuala Lumpur, Malaysia.