Trade liberalization, exit, and productivity improvements: Evidence from Chilean plants

摘要: This paper empirically investigates the effects of liberalized trade on plant productivity in case Chile. Chile presents an interesting setting to study this relationship since it underwent a massive liberalization that significantly exposed its plants competition from abroad during late 1970s and early 1980s. Methodologically, I approach question two steps. In first step, estimate production function obtain measure productivity. semiparametrically correct for presence selection simultaneity biases estimates input coefficients required construct measure. explicitly incorporate exit estimation problem induced by liquidated plants. These methodological aspects are important obtaining reliable plant-level based consistent coefficients. second identify impact plants' regression framework allowing variation over time across traded- nontraded-goods sectors. Using panel data Chilean manufacturers, find evidence within improvements can be attributed import-competing sector. many cases, aggregate stem reshuffling resources output less more efficient producers.