Import Constraints / Diego A. Comin, Robert C. Johnson, Callum J. Jones.

Format:

Book

Author/Creator:

Comin, Diego A.

Contributor:

National Bureau of Economic Research.

Johnson, Robert C.

Jones, Callum J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w32072.

NBER working paper series no. w32072

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2024.

Summary:

During the recovery from the COVID-19 pandemic, international shipping and logistics capacity was strained, limiting the quantity of imports. We investigate the impact of an import constraint on inflation, following an increase in domestic demand. Whether the binding import constraint raises inflation depends on how it affects trade intermediation costs. If the binding constraint raises trade costs, then import price inflation also increases. In this case, however, foreign producer price inflation falls, and import quantities rise more for inputs than final goods. Both these model results appear counterfactual, which suggests that import constraints may not explain observed import price inflation.

Notes:

Print version record

January 2024.