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American Economic Review: Vol. 101 No. 1 (February 2011)
AER Volume. 101, Issue 1 | 
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Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms
Article Citation
Bustos, Paula. 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms."
American Economic Review,
101(1): 304-40.
DOI: 10.1257/aer.101.1.304
DOI: 10.1257/aer.101.1.304
Abstract
This paper studies the impact of a regional free trade agreement, MERCOSUR, on technology upgrading by Argentinean firms. To guide empirical work, I introduce technology choice in a model of trade with heterogeneous firms. The joint treatment of the technology and exporting choices shows that the increase in revenues produced
by trade integration can induce exporters to upgrade technology. An
empirical test of the model reveals that firms in industries facing higher reductions in Brazil's tariffs increase investment in technology faster. The effect of tariffs is highest in the upper-middle range of the firm-size distribution, as predicted by the model. (JEL F13, F15, O19, O24, O33)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (20.81 KB) | Online Appendix (139.29 KB)
Authors
Bustos, Paula (CREI and U Pompeu Fabra)
JEL Classifications
F13: Trade Policy; International Trade Organizations
F15: Economic Integration
O19: International Linkages to Development; Role of International Organizations
O24: Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
O33: Technological Change: Choices and Consequences; Diffusion Processes
F15: Economic Integration
O19: International Linkages to Development; Role of International Organizations
O24: Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
O33: Technological Change: Choices and Consequences; Diffusion Processes
