Trade Policy and Productivity Growth:

Analysis of trade policy and productivity growth is designed to  analyse the dynamic effects. But industry  and firm  level studies  have found no evidence  of faster growth of productivity in industries or firms  in countries with outward oriented policies  in contrast to countries with inward oriented  policies  (Rodrik). Studies also have found no evidence of faster productivity growth in export
industries as compared to import substituting industries. Theoretical work by Rodrik and Allwyn Young also casts doubt on the notion that ISI  policies are dynamically  inefficient. The studies  do not find a significant relation between trade policy and the savings rate.  So  slower growth  can only  be attributed  to  a higher capital output ratio.