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Imported Inputs and Productivity
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DOI：10.1257/aer.20150443.png)
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Abstract
En 中文
We estimate a model of importers in Hungarian microdata and conduct counterfactual analysis to investigate the effect of imported inputs on productivity. We find that importing all input varieties would increase a firm's revenue productivity by 22 percent, about one-half of which is due to imperfect substitution between foreign and domestic inputs. Foreign firms use imports more effectively and pay lower fixed import costs. We attribute one-quarter of Hungarian productivity growth during the 1993-2002 period to imported inputs. Simulations show that the productivity gain from a tariff cut is larger when the economy has many importers and many foreign firms.
Keywords:
INTERNATIONAL-TRADE
INTERMEDIATE INPUTS
ECONOMIC-DEVELOPMENT
FIRMS
LIBERALIZATION
HETEROGENEITY
DYNAMICS
GROWTH
COSTS
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