Journal
QUARTERLY JOURNAL OF ECONOMICS
Volume 125, Issue 4, Pages 1727-1767Publisher
OXFORD UNIV PRESS INC
DOI: 10.1162/qjec.2010.125.4.1727
Keywords
-
Categories
Ask authors/readers for more resources
New goods play a central role in many trade and growth models. We use detailed trade and firm-level data from India to investigate the relationship between declines in trade costs, imports of intermediate inputs, and domestic firm product scope. We estimate substantial gains from trade through access to new imported inputs. Moreover, we find that lower input tariffs account on average for 31% of the new products introduced by domestic firms. This effect is driven to a large extent by increased firm access to new input varieties that were unavailable prior to the trade liberalization.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available