Imported Inputs and the Gains from Trade

  title={Imported Inputs and the Gains from Trade},
  author={Ananth Ramanarayanan},
  • Ananth Ramanarayanan
  • Published 2013
The bulk of international trade takes place in intermediate inputs as opposed to goods for …nal consumption. Studies of …rm-level data show that there is substantial heterogeneity in the share of inputs that are imported by di¤erent …rms, and that a …rm’s productivity increases with the quantity and variety of inputs that it imports. This paper develops a model to quantify the contributions of …rm-level productivity gains from importing to aggregate productivity and welfare gains from trade. In… CONTINUE READING