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Imports of intermediate inputs and country size

Author

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  • Amin, Mohammad
  • Islam, Asif

Abstract

The paper analyzes 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. The results confirm that, as is the case with exports, use of imported intermediate inputs is much higher at the extensive and intensive margins in small relative to large countries. The results for imported inputs are comparable in magnitude with those for exports.

Suggested Citation

  • Amin, Mohammad & Islam, Asif, 2014. "Imports of intermediate inputs and country size," Policy Research Working Paper Series 6758, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6758
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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.
    2. Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, 2007. "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.
    3. Andrew K. Rose, 2006. "Size Really Doesn't Matter: In Search of a National Scale Effect," NBER Working Papers 12191, National Bureau of Economic Research, Inc.
    4. Joachim Wagner, 2016. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 2, pages 43-87, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

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    3. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    4. Fedotenkov, Igor, 2015. "International Trade and Migration: Why Do Migrants Choose Small Countries?," MPRA Paper 66035, University Library of Munich, Germany.
    5. Ki‐Dong Lee & Sunghee Choi & Kangsik Choi, 2020. "Bertrand versus Cournot competition in a downstream mixed oligopoly with foreign ownership," Bulletin of Economic Research, Wiley Blackwell, vol. 72(2), pages 101-120, April.

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    Keywords

    Economic Theory&Research; Trade Policy; Free Trade; Achieving Shared Growth; Science Education;
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