Imported Intermediate Inputs and Domestic Product Growth: Evidence from India
Quarterly Journal of Economics, Vol. 125, No. 4, pp. 1727-1767, 2010
36 Pages Posted: 26 Oct 2011
Date Written: 2010
Abstract
New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from India to investigate the relationship between declines in trade costs, imports of intermediate inputs and domestic firm product scope. We estimate substantial gains from trade through access to new imported inputs. Moreover, we find that lower input tariffs account on average for 31 percent of the new products introduced by domestic firms. This effect is driven to a large extent by increased firm access to new input varieties that were unavailable prior to the trade liberalization.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Multi-Product Firms and Product Switching
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Product Switching
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Product Switching
By Stephen J. Redding, Andrew B. Bernard, ...
-
Multi-Product Firms and Product Switching
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Trade Liberalization
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Trade Liberalization
By Andrew B. Bernard, Stephen J. Redding, ...
-
Multi-Product Firms and Trade Liberalization
By Andrew B. Bernard, Stephen J. Redding, ...
-
Comparative Advantage and Heterogeneous Firms
By Andrew B. Bernard, Stephen J. Redding, ...
-
Comparative Advantage and Heterogeneous Firms
By Andrew B. Bernard, Stephen J. Redding, ...
-
Comparative Advantage and Heterogenous Firms
By Andrew B. Bernard, Stephen J. Redding, ...