The Role of Imports for Exporter Performance in Peru

38 Pages Posted: 20 Apr 2016 Last revised: 30 Apr 2018

See all articles by Martha Denisse Pierola

Martha Denisse Pierola

World Bank - Development Research Group (DECRG)

Ana M. Fernandes

World Bank - International Trade Division; World Bank

Thomas Farole

World Bank

Martha D. Pierola Castro

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: November 13, 2015

Abstract

Using highly disaggregated firm-level customs transaction data for imports and exports in Peru over the 2000?2012 period, this paper explores the relationship between imports of intermediate inputs and firm export performance. The paper shows that greater use, variety, and quality of imported intermediate inputs is significantly correlated with higher exports, faster export growth, greater diversification of export markets, and higher quality exports (as measured by relative unit prices) at the firm level. This relationship is robust and persistent to controls for unobserved firm heterogeneity and year fixed effects. The use of imported inputs is also associated with higher productivity at the firm level. Considering the relationship between specific trade policy measures and the import performance of those exporters that are direct importers, the analysis shows that those exposed to higher tariffs and nontariff measures import less in total and exhibit lower import variety. The use of the advanced clearance procedure as the modality to clear customs for imports is favorable to the import performance of exporter-importers, in that the users of the modality import more and import a more diversified bundle of inputs than those that do not use it, even after controlling for firm size.

Keywords: Agribusiness, Common Carriers Industry, Plastics & Rubber Industry, Food & Beverage Industry, Business Cycles and Stabilization Policies, Pulp & Paper Industry, Textiles, Apparel & Leather Industry, International Trade and Trade Rules, General Manufacturing, Construction Industry, Labor Markets, Trade and Multilateral Issues, Trade Policy, Rules of Origin

Suggested Citation

Pierola, Martha Denisse and Fernandes, Ana Margarida and Farole, Thomas and Pierola Castro, Martha D., The Role of Imports for Exporter Performance in Peru (November 13, 2015). World Bank Policy Research Working Paper No. 7492. Available at SSRN: https://ssrn.com/abstract=2690631

Martha Denisse Pierola (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street N.W.
MSN3-311
Washington, DC 20433
United States

Ana Margarida Fernandes

World Bank - International Trade Division

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/afernandes

Thomas Farole

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Martha D. Pierola Castro

affiliation not provided to SSRN

No Address Available

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