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Imports of intermediate inputs and country size

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  • Mohammad Amin
  • Asif Islam

Abstract

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

Suggested Citation

  • Mohammad Amin & Asif Islam, 2014. "Imports of intermediate inputs and country size," Applied Economics Letters, Taylor & Francis Journals, vol. 21(11), pages 738-741, July.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:11:p:738-741
    DOI: 10.1080/13504851.2014.887183
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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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    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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