Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia

American Economic Review - Tập 97 Số 5 - Trang 1611-1638 - 2007
Mary Amiti1, Jozef Konings2
1International Research, Federal Reserve Bank of New York, 33 Liberty St., New York, NY 10045, and Centre for Economic Policy Research.
2Economics Department and LICOS, Katholieke Universiteit Leuven, Naamestraat 69, 3000 Leuven, Belgium, and CEPR.

Tóm tắt

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)

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American Economic Review

Tập 97 Số 5

1611-1638

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