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Book Cover
Author Amiti, Mary, author

Title Trade liberalization, intermediate inputs and productivity : evidence from Indonesia / prepared by Mary Amiti and Jozef Konings
Published Washington, D.C. : International Monetary Fund, Research Dept., [2005]
Online access available from:
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Description 1 online resource (34 pages) : illustrations
Series IMF working paper ; WP/05/146
IMF working paper ; WP/05/146
Summary This paper estimates the effects of trade liberalization on plant productivity. In contrast to previous studies, we distinguish between productivity gains arising from lower tariffs on final goods relative to lower tariffs on intermediate inputs. Lower output tariffs can produce productivity gains by inducing tougher import competition whereas cheaper imported inputs can raise productivity via learning, variety, or quality effects. We use Indonesian manufacturing census data from 1991 to 2001, which includes plant-level information on imported inputs. The results show that the largest gains arise from reducing input tariffs. A 10 percentage point fall in output tariffs increases productivity by about 1 percent, whereas an equivalent fall in input tariffs leads to a 3 percent productivity gain for all firms and an 11 percent productivity gain for importing firms
Notes "July 2005."
Bibliography Includes bibliographical references (pages 31-34)
Notes Online resource; title from title screen (viewed July 18, 2008)
Subject Free trade -- Indonesia.
Industrial productivity -- Indonesia.
Intermediate goods -- Indonesia.
International trade.
Form Electronic book
Author Konings, Jozef, author
International Monetary Fund. Research Department, issuing body
ISBN 1283518066