Studies integrating trade policy and firms' exposure to international trade as determinants of firms' TFP are scarce. We contribute to fill in this gap. We focus on Brazilian manufacturing and mining firms in 2000-2008, when this economy experienced a slow trade liberalization process. However, we still obtain productivity improvements from trade liberalization. We also find that the effects of import tariff reductions spread among all firms. In addition, using Effective Rates of Protection instead of input and output tariffs is misleading and it is also relevant controlling for Exchange Rates. Lastly, results are consistent with learning-by-exporting and learning-by-importing.
