Imported Intermediate Inputs and Domestic Product Growth: Evidence from India
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Citations
Essays on trade and export development
Economic Reform, Labour Markets and Informal Sector Employment: Evidence from India
Trade and plant level productivity gains: Role of Import Liberalisation, Technological Spillovers and Variety Growth in Indian Manufacturing
Essays on Multinational Production and International Trade.
Trade reform and trade flows in South Africa: a product level analysis
References
Endogenous Technological Change
Endogenous Technological Change
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
Innovation and growth in the global economy
The Dynamics Of Productivity In The Telecommunications Equipment Industry
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Frequently Asked Questions (9)
Q2. What future works have the authors mentioned in the paper "Imported intermediate inputs and domestic product growth: evidence from india by pinelopi goldberg, princeton university" ?
More detailed data would enable us, for example, to study the determinants and consequences of differential adoption of imported inputs by Indian firms, although such a study would need to address the endogeneity of this differential adoption of imported inputs by firms – the trade policy changes the authors exploit as a source of identification do not vary by firm. In future work the authors plan to further explore the contribution of these new products to TFP by exploiting product-level information on prices and sales available in their data. While the authors do not concentrate on aggregate growth, the fact that the creation of new domestic products accounted for nearly 25 percent of total Indian manufacturing output growth during their sample period suggests that the implications of access to new imported intermediate products for growth are potentially important. This will allow us to ultimately provide a direct estimate of the dynamic gains from trade.
Q3. What is the controversial component of the identification strategy?
Perhaps the most controversial component of this identification strategy is that the unobservable components in (19) include total factor productivity since there is a evidence that trade liberalizations lead to productivity improvements.
Q4. What is the effect of tariffs on the marginal cost of production for Indian firms?
production process by domestic firms, the observed declines in unit values of existing products will lower the marginal cost of production for Indian firms.
Q5. What is the main argument for a rationalization of output tariffs?
One would expect elimination of x-inefficiency to be driven by pro-competitive output tariffs, rather than changes in input tariffs.
Q6. How much of the input variety index declined during the period of their analysis?
During the period of their analysis, input tariffs declined on average by 24 percentage points, andfrom column 2, the decline in input tariffs led to a .25% decline in input variety index on average.
Q7. What is the coefficient on the input variety index in column 2?
The coefficient on the input variety index in column 2 is negative and statistically significant suggesting that an increase in input variety (captured by a lower index number) is associated with an expansion of firm scope.
Q8. What is the significance of the importation of new intermediate products for growth?
While the authors do not concentrate on aggregate growth, the fact that the creation of new domestic products accounted for nearly 25 percent of total Indian manufacturing output growth during their sample period suggests that the implications of access to new imported intermediate products for growth are potentially important.
Q9. How does the relationship between input tariffs and product scope in India differ from other countries?
The relationship is also economically significant: lower input tariffs account on average for 31 percent of the observed increase in firms' product scope over this period.