Imported Intermediate Inputs and Domestic Product Growth: Evidence from India
Abstract
New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from India to investigate the relationship between declines in trade costs, imports of intermediate inputs and domestic firm product scope. We estimate substantial gains from trade through access to new imported inputs. Moreover, we find that lower input tariffs account on average for 31 percent of the new products introduced by domestic firms. This effect is driven to a large extent by increased firm access to new input varieties that were unavailable prior to the trade liberalization.
This is an electronic version of an article published in Quarterly Journal of Economics 125, no. 4 (2010): 1727-1767.
Download PDF
Citation
Goldberg, Penny, Amit Khandelwal, Nina Pavcnik, and Petia Topalova. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India." Quarterly Journal of Economics 125, no. 4 (2010): 1727-1767.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.