Productivity and openness: firm level evidence in Brazilian manufacturing industries
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This study investigates the productivity of Brazilian manufacturing industries, particularly addressing the influence of liberalization on productivity. We first calculate total factor productivity (TFP) by estimating the stochastic frontier production function and the inefficiency determination equation simultaneously. Then TFP growth rates are regressed on openness-related variables and other firm characteristics. The results show that firm openness to the world is a crucial determinant of their productivity. Data used for this study were obtained from the Investment Climate Survey, provided by the World Bank.
KeywordsTFP Liberalization Brazil Stochastic frontier analysis
We are very grateful to the editor and anonymous referees for their valuable comments that improved this paper. We would also like to thank the World Bank Group for allowing us to have access to the data used in this paper. All the analysis, interpretations and conclusions drawn from the data in this paper are entirely and solely those of us.
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