Item Summary

Abstract “Access to foreign intermediate inputs raises firm and aggregate productivity. This paper documents that domestic wholesalers provide such access by importing almost half of the foreign inputs used by Chilean firms. A calibrated model of trade and distribution shows that relative to the case where domestic firms can only buy directly from foreign suppliers, aggregate productivity under wholesaler importers is 7.5 percent higher. Wholesaler importers play such a large role because they allow medium and small domestic producers to buy from large (efficient) foreign suppliers. Moreover, increases in the efficiency of the wholesaler importing sector have a larger effect on aggregate productivity than similar reductions in tariffs or in the fixed cost of importing an intermediate input. Also, the presence of wholesaler importers doubles the effect of a trade liberalization on aggregate productivity.”

Keywords: Intermediaries, Intermediate input, Relationship costs, Productivity

Descriptive Information

Title
Foreign intermediate inputs, import intermediaries, and aggregate productivity
Sort Title
foreign intermediate inputs, import intermediaries, and aggregate productivity
Creator of work
Blum, Bernardo S.
Contributor
Claro, Sebastian
Dasgupta, Kunal
Horstmann, Ignatius J.
Rangel, Marcos
Publisher
Bangalore : Indian Institute of Management Bangalore (IIMB)
Language
English
Date Created
2022
Format
Series
Series
Indian Institute of Management Bangalore (IIMB) Working Paper no : 664
Provenance
Open-access link provided by the Library of Congress Office, New Delhi, India
Rights Statement
Copyright Not Evaluated

Discovery Information

Subject
Economics
International business enterprises
Trade associations
Socioeconomic conditions and development
Small business
Geographic Subject
India
Geographic Origin
India

Physical Characteristics

Page Count
54
File Count
54

Institutional Information

Collection
Born Digital Monographic Reports and Papers
Box number
Monographic Reports and Papers (Publicly Accessible)
Folder number
0584a398-559c-4e52-8472-6225aa218a08
Barcode
0584a398-559c-4e52-8472-6225aa218a08
IIIF Manifest URL

https://figgy.princeton.edu/concern/ephemera_folders/0584a398-559c-4e52-8472-6225aa218a08/manifest