Use of imported inputs and the cost of importing: evidence from developing countries

Mohammad Amin and Asif Islam

No 7005, Policy Research Working Paper Series from The World Bank

Abstract: For a representative sample of manufacturing firms in 26 countries, this paper shows that changes in the cost of importing over time are significantly and negatively correlated with changes in the percentage of firms'material inputs that are of foreign origin. Furthermore, the paper shows that there may be a nonlinear relationship between import costs and imports. These findings are important, as recent studies point toward a significant positive effect of imported inputs on productivity and growth. It is hoped that the present paper inspires more work on the determinants of the use of imported inputs, especially in developing countries.

Keywords: Economic Theory&Research; Trade Policy; Achieving Shared Growth; Free Trade; Debt Markets (search for similar items in EconPapers)
Date: 2014-08-01
New Economics Papers: this item is included in nep-int
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Journal Article: Use of imported inputs and the cost of importing: evidence from developing countries (2015)
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