Trade Liberalization, Intermediate Inputs, and Productivity : Evidence from Indonesia / Mary Amiti, Jozef Konings.

Format:

Book

Government document

Author/Creator:

Amiti, Mary.

Contributor:

Konings, Jozef.

International Monetary Fund. Research Department.

Series:

IMF Working Papers; Working Paper ; No. 2005/146

IMF Working Papers

Language:

English

Subjects (All):

International trade.

Free trade--Indonesia.

Free trade.

Intermediate goods--Indonesia.

Intermediate goods.

Industrial productivity--Indonesia.

Industrial productivity.

Physical Description:

1 online resource (35 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2005.

Language Note:

English

Summary:

This paper estimates the effects of trade liberalization on plant productivity. In contrast to previous studies, we distinguish between productivity gains arising from lower tariffs on final goods relative to lower tariffs on intermediate inputs. Lower output tariffs can produce productivity gains by inducing tougher import competition whereas cheaper imported inputs can raise productivity via learning, variety, or quality effects. We use Indonesian manufacturing census data from 1991 to 2001, which includes plant-level information on imported inputs. The results show that the largest gains arise from reducing input tariffs. A 10 percentage point fall in output tariffs increases productivity by about 1 percent, whereas an equivalent fall in input tariffs leads to a 3 percent productivity gain for all firms and an 11 percent productivity gain for importing firms.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. MODEL AND ESTIMATION STRATEGY""; ""III. TRADE POLICY IN INDONESIA""; ""IV. DATA""; ""V. RESULTS""; ""VI. CONCLUSIONS""; ""REFERENCES""

Notes:

"July 2005."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613830517

9781462300389

1462300383

9781452797588

1452797587

9781283518062

1283518066

9781451907018

145190701X