The effects of input tariffs on productivity: panel data evidence for OECD countries

Maria Bas, Åsa Johansson, Fabrice Murtin and Giuseppe Nicoletti
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Åsa Johansson: OECD Economics Department

Review of World Economics (Weltwirtschaftliches Archiv), 2016, vol. 152, issue 2, No 7, 424 pages

Abstract: Abstract Based on a panel of 16 OECD countries and 10 manufacturing industries over 1996–2007, this paper investigates the impact of tariffs on foreign intermediate goods on productivity growth in downstream manufacturing industries. The results show that imposing tariffs on imported intermediate goods is particularly harmful for industries that operate close to the global technological frontier. We also consider the possibility that input-tariff liberalisation may have different effects depending on the technological content of imported intermediate goods. Our findings suggest that protecting imports of high-technological goods is more harmful for productivity improvements in industries that operate close to global best practice.

Keywords: Productivity; Growth; Catching-up; Intermediate input tariff; Trade (search for similar items in EconPapers)
JEL-codes: C23 L5 O24 O43 O57 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s10290-016-0247-z

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