Fernandes, Ana Margarida2014-05-092014-05-092003-05https://hdl.handle.net/10986/18217Fernandes explores Colombian trade policy from 1977-91, a period of substantial variation in protection across industries, to examine whether increased exposure to foreign competition generates plant-level productivity gains. Using a large panel of manufacturing plants, she finds a strong positive impact of tariff liberalization on consistent productivity estimates, controlling for plant and industry heterogeneity. This result is not driven by the endogeneity of protection nor by plant exit. The impact of tariff liberalization on productivity is stronger for large plants and for plants in less competitive industries. Qualitatively similar results are obtained when using effective rates of protection and import penetration ratios as measures of protectionen-USCC BY 3.0 IGOAPPARELAVERAGE TARIFFCAPITAL GOODSCAPITAL STOCKCENTRAL BANKCHANGES IN TRADECOMPETITORSCONDITIONSCONSTANT RETURNS TO SCALECONSUMERSCURRENT ACCOUNTDEVELOPMENT ECONOMICSDOMESTIC COMPETITIONDOMESTIC MARKETDOMESTIC PRODUCERSDOMESTIC PRODUCTIONEMPIRICAL EVIDENCEEMPLOYMENTEXCHANGE RATEEXOGENOUS VARIABLESEXPECTED VALUEEXPLOITATIONEXPORT ORIENTATIONEXPORTERSEXPORTSFINAL GOODSFOREIGN COMPETITIONFOREIGN INDUSTRIESFUELSHIGH TARIFFSIMPACT OF TRADEIMPACT OF TRADE LIBERALIZATIONIMPERFECT COMPETITIONIMPORT BARRIERSIMPORT COMPETITIONIMPORT LICENSINGIMPORT PENETRATIONIMPORT SUBSTITUTIONIMPORT SUBSTITUTION INDUSTRIALIZATIONIMPORTSINDUSTRIAL CLASSIFICATIONINDUSTRIAL PRODUCTIONINDUSTRIAL PRODUCTIVITYINDUSTRIALISTSINDUSTRIALIZATIONINEFFICIENCYINFLATIONINPUT PRICESINPUT USEINTERMEDIATE INPUTSINVENTORIESLICENSINGMACROECONOMIC SHOCKSMARKET SHAREMEASURE OF TRADEMETAL PRODUCTSMETALSMONEY SUPPLYOLIGOPOLYOPPORTUNITY COSTOPTIMIZATIONPOLITICAL ECONOMYPRICE INDEXESPRODUCERSPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTION TECHNOLOGYPRODUCTIVITYPRODUCTIVITY GROWTHPROFIT MAXIMIZATIONRATES OF PROTECTIONREAL EXCHANGE RATETARIFF DATATARIFF LEVELSTARIFF RATESTARIFF REVENUETAX REVENUETOTAL FACTOR PRODUCTIVITYTOTAL OUTPUTTOTAL REVENUETRADE BARRIERSTRADE LIBERALIZATIONTRADE NEGOTIATIONSTRADE OPENNESSTRADE POLICYTRADE PROTECTIONTRADE REFORMTRADE REGIMETRADE REGIMESTRADE RESTRICTIONSTRADE VOLUMESUNSKILLED LABORURUGUAY ROUNDVALUE ADDEDVARIABLE INPUTSWORKER TRAINING TRADE POLICYPRODUCTIVITYMANUFACTURING PRODUCTIONTARIFF POLICYIMPORTSDEVELOPMENT ECONOMICSDEVELOPING COUNTRIESPLANT PRODUCTSLOBBYINGINDUSTRY FINANCEEXPORTSCAPITAL GOODSTRADE LIBERALIZATIONWORKER TRAININGTRADE POLICY10.1596/1813-9450-3064