Record Details

The effect of trade policy on firm productivity in Thai manufacturing

Philippine Review of Economics

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Title The effect of trade policy on firm productivity in Thai manufacturing
 
Creator Kohpaiboon, Archanun; Thammasat University, Thailand
Jongwanich, Juthathip; Thammasat University, Thailand
 
Subject trade policy, Thai manufacturing, effective rate of protection, productivity and developing countries
 
Description The paper examines the effect of trade policy on firm productivity using two recent industrial censuses of Thai manufacturing (i.e., 2006 and 2011). Trade policy and global participation are treated as two different variables in our analysis. Controlling for firms’ global participation, which is defined as export-sale ratio and the extent to which raw materials are imported, our study finds that trade liberalization could induce firms to commit to activities that improve productivity. The effective rate of protection, where output and input tariffs are taken into consideration together, matters in improving firm productivity. Thus, it would be risky to continue tariff reform by focusing solely on a reduction in input tariffs while leaving output tariffs untouched. In fact, both input and output tariffs must be taken into consideration to neutralize incentives in trade policy reform. JEL classification: F10, N75
 
Publisher Philippine Review of Economics
 
Contributor —
 
Date 2015-12-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Identifier http://www.econ.upd.edu.ph/pre/index.php/pre/article/view/928
 
Source Philippine Review of Economics; Vol 52, No 2 (2015); 143-169
1655-1516
 
Language en
 
Rights Copyright (c) 2017 Philippine Review of Economics