Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/214989
Authors: 
Defever, Fabrice
Imbruno, Michele
Kneller, Richard
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7987
Abstract: 
We investigate theoretically and empirically the role of wholesalers in mediating the productivity effects of trade liberalization. Intermediaries provide indirect access to foreign produced inputs. The productivity effects of input tariff cuts on firms that do not directly import therefore depends on the extent that wholesalers are a feature of input supply within an industry. Using firm level data from China, we document that wholesalers play no such role for direct importers. However, other firms experience productivity gains from reducing input tariffs if trade intermediation of foreign inputs within their sector is high. They suffer efficiency losses otherwise.
Subjects: 
firm heterogeneity
trade liberalization
intermediate inputs
productivity
intermediaries
China
JEL: 
F12
F13
Document Type: 
Working Paper

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