Trade Liberalization, Intermediate Inputs, and Productivity
Evidence from Indonesia
Bibliographic Data
| ID | 23364299 |
|---|---|
| Authors | Mary Amiti (Federal Reserve Bank of New York), Jozef Konings (0000-0003-1280-4674, KU Leuven) |
| Year | 2007 |
| Volume | 97 |
| Issue | 5 |
| Pages | 1611-1638 |
| Publication date | 2007-12-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | American Economic Review (JOURNAL) |
| Journal identifiers | ISSN: 0002-8282 • E-ISSN: 1944-7981 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/aer.97.5.1611 |
| OpenAlex | W3121855595 |
| Language | EN |
| Citations received | 235 |
| References cited | 45 |
This paper estimates the productivity gains from reducing tariffs on final goods and from reducing tariffs on intermediate inputs. Lower output tariffs can increase productivity by inducing tougher import competition, whereas cheaper imported inputs can raise productivity via learning, variety, and quality effects. We use Indonesian manufacturing census data from 1991 to 2001, which include plant-level information on imported inputs. The results show that a 10 percentage point fall in input tariffs leads to a productivity gain of 12 percent for firms that import their inputs, at least twice as high as any gains from reducing output tariffs. (JEL F12, F13, L16, O14, O19, O24)
Agricultural economics · Competition (biology) · Economics · Free trade · International economics · International trade · Macroeconomics · Point (geometry) · Productivity · Global Trade and Competitiveness · Global trade and economics · International Business and FDI
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| Unique citing works | 235 |
|---|---|
| Citations per year | 10,68 |
| Citation span | 2004 - 2026 (23) |
| Citation velocity | current |
| Highly cited | Yes |
| Citation types | Neutral: 221 |