Input reallocation within multi-product firms

• 成果类型: Article
• 署名作者: Vandenbussche, Hylke; Viegelahn, Christian
• 署名单位: KU Leuven; Centre for Economic Policy Research - UK; Universite Catholique Louvain
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.04.010
• 发表日期: 2018
• 页码: 63-79
• 关键词: Firm level data; Importers; INDIA; Input reallocation; Multi-product firms; Raw material inputs; Trade policy

摘要

This paper studies within-firm input reallocation, resulting from trade protection on imported raw material inputs used in firm-level production. Indian antidumping cases show that firms significantly lower their use of protected inputs from abroad, relative to other inputs in response to import protection. We develop a firm-level input-output correspondence, to identify outputs produced with protected inputs and find significant output losses relative to sales of other outputs. For India this corresponds to an aggregate annual output loss of up to 10% of Indian manufacturing output growth. The paper contributes to the misallocation debate by providing micro-foundations underlying more aggregate misallocations. (C) 2018 Elsevier B.V. All rights reserved.