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- W2115856144 abstract "The paper estimates the causal eect of trade liberalisation on aggre- gate productivity through mechanisms related to …rm selection. The con- struction of a bridge in 2000 across the Oresund Strait linking Copenhagen with Malmo, Sweden's third largest city, provided a natural experiment with which to analyse this eect. A dierence-in-dierence methodology is applied using both geographic and sectoral variation in how much the bridge aected export patterns and productivity. Firms based in Malmo raise exports to Denmark substantially, mostly by …rms selecting into ex- porting, and the aggregate productivity in Malmo increases. I …nd that almost all of Malmo's productivity growth is due to the reallocation of production from less productive to more productive …rms. When de- composing the productivity gain, I …nd that these e¢ ciency gains come mostly from the exit of the least productive …rms but also from …rms with an above-average productivity that start to export and therefore ex- pand their output share. The two largest sectors in Malmo are wholesale trade and manufacturing. Exports by the wholesale sector in Malmo are strongly aected by the bridge whereas those of manufacturing are not. The productivity eects are also the strongest in the wholesale sector. � I am grateful for comments from seminar participants at the International Monetary Fund, the ETSG Meeting in Athens 2007, NOITS in Bergen 2008 and for helpful comments by Richard Baldwin, Karolina Ekholm, Doireann Fitzgerald, Rikard Forslid, Nicola Fuchs Schundeln, Elhanan Helpman, Martin Bech Holte, Marc Melitz and Diego Puga. Financial support from the Jan Wallander's and Tom Hedelius'Foundation is gratefully acknowledged." @default.
- W2115856144 created "2016-06-24" @default.
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- W2115856144 date "2009-04-29" @default.
- W2115856144 modified "2023-09-27" @default.
- W2115856144 title "Trade, Reallocations and Productivity: A Bridge between Theory and Data in Öresund" @default.
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