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Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia Author info | Abstract | Publisher info | Download info | Related research | Statistics Mary Amiti
Jozef Konings
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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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Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 97 (2007)
Issue (Month): 5 (December)
Pages: 1611-1638
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Paper Mary Amiti & Jozef Konings, 2005.
"Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia ,"
IMF Working Papers
05/146, International Monetary Fund.
[Downloadable!] Amiti, Mary & Konings, Jozef, 2005.
"Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia ,"
CEPR Discussion Papers
5104, C.E.P.R. Discussion Papers.
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