Input-trade liberalization and firm export decisions: Evidence from Argentina
AbstractTrade openness contributes to the diffusion of the modern technologies embodied in imported intermediate goods, which play a central role in the economic growth of developing countries. This paper investigates the micro-economic effects of input-trade liberalization. Previous work has found positive effects of access to foreign inputs on firm performance. If the availability of imported intermediate goods yields firm productivity gains, we would also expect a positive effect of input-trade liberalization on firm export decisions. This paper contributes to this literature by looking at the relationship between changes in input tariffs and within-firm changes in export status. Using detailed firm-level data from Argentina, I demonstrate that the probability of entering the export market is higher for firms producing in industries that have experienced greater input tariff reductions. These empirical findings are robust to alternative specifications that control for other trade-policy reforms, and industry and firm characteristics.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 97 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/devec
Input-trade liberalization; Foreign intermediate goods; Export decisions; Firm-level data;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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- Ling Feng & Zhiyuan Li & Deborah L. Swenson, 2012.
"The Connection between Imported Intermediate Inputs and Exports: Evidence from Chinese Firms,"
IAW Discussion Papers
86, Institut für Angewandte Wirtschaftsforschung (IAW).
- Ling Feng & Zhiyuan Li & Deborah L. Swenson, 2012. "The Connection between Imported Intermediate Inputs and Exports: Evidence from Chinese Firms," NBER Working Papers 18260, National Bureau of Economic Research, Inc.
- Ana Fernandes & Heiwai Tang, 2012.
"Learning from Neighbors' Export Activities: Evidence from Exporters' Survival,"
Discussion Papers Series, Department of Economics, Tufts University
0766, Department of Economics, Tufts University.
- Ana Fernandes & Heiwai Tang, 2012. "Learning from Neighbors’ Export Activities: Evidence from Exporters’ Survival," Development Working Papers 337, Centro Studi Luca d\'Agliano, University of Milano, revised 16 Jul 2012.
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