Use of Imported Inputs and the Cost of Importing: Evidence from Developing Countries

Asif M. Islam, Mohammad Amin
2013 Social Science Research Network  
For a representative sample of manufacturing firms in 26 countries, the paper shows that changes in the cost of importing over time is significantly and negatively correlated with changes in the percentage of firm's material inputs that are of foreign origin. Furthermore, we show that there may be a non-linear relationship between import costs and imports. These findings are important as recent studies point towards a significant positive effect of imported inputs on productivity and growth. We
more » ... hope that the present paper inspires more work on the determinants of imported inputs usage especially in developing countries.
doi:10.2139/ssrn.2279204 fatcat:3iqktttgvfgjhb2wfhgizom7qi