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Imports of intermediate inputs and country size

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  • Mohammad Amin
  • Asif Islam

Abstract

The article analyses the relationship between country size and the use of imported intermediate inputs by firms in 76 developing countries. Recent evidence indicates that the use of imported inputs can have a large positive effect on productivity and growth, thus motivating a better understanding of the determinants of foreign inputs. Our results confirm that as is the case with exports, use of imported intermediate inputs is much higher at the extensive and intensive margin in small relative to large countries. Our results for imported inputs are comparable in magnitude with that for exports.

Suggested Citation

  • Mohammad Amin & Asif Islam, 2014. "Imports of intermediate inputs and country size," Applied Economics Letters, Taylor & Francis Journals, vol. 21(11), pages 738-741, July.
  • Handle: RePEc:taf:apeclt:v:21:y:2014:i:11:p:738-741
    DOI: 10.1080/13504851.2014.887183
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    References listed on IDEAS

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    1. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
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    Cited by:

    1. Fedotenkov, Igor, 2015. "International Trade and Migration: Why Do Migrants Choose Small Countries?," MPRA Paper 66035, University Library of Munich, Germany.
    2. Escaith, Hubert & Gaudin, Hadrien, 2014. "Clustering Value-Added Trade: Structural and Policy Dimensions," MPRA Paper 57276, University Library of Munich, Germany.

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