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Publication year
Imported Inputs and Productivity
Resource type
Authors/contributors
- Halpern, László (Author)
- Koren, Miklós (Author)
- Szeidl, Adam (Author)
Title
Imported Inputs and Productivity
Abstract
We estimate a model of importers in Hungarian microdata and conduct counterfactual analysis to investigate the effect of imported inputs on productivity. We find that importing all input varieties would increase a firm's revenue productivity by 22 percent, about one-half of which is due to imperfect substitution between foreign and domestic inputs. Foreign firms use imports more effectively and pay lower fixed import costs. We attribute one-quarter of Hungarian productivity growth during the 1993-2002 period to imported inputs. Simulations show that the productivity gain from a tariff cut is larger when the economy has many importers and many foreign firms. (JEL D24, F13, F14, L60)
Publication
American Economic Review
Volume
105
Issue
12
Pages
3660-3703
Date
2015-12
Citation
Halpern, L., Koren, M., & Szeidl, A. (2015). Imported Inputs and Productivity. American Economic Review, 105, 3660–3703.
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