INVENTORIES, INPUT COSTS, AND PRODUCTIVITY GAINS FROM TRADE LIBERALIZATIONS

• 成果类型: Article
• 署名作者: Khan, Shafaat Yar; Khederlarian, Armen
• 署名单位: Syracuse University; City University of New York (CUNY) System; Hunter College (CUNY)
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12731
• 发表日期: 2025
• 页码: 175-199
• 关键词: intermediate inputs; firm performance; QUALITY; markups; US

摘要

Sourcing internationally allows firms to access cheaper or better inputs but increases logistical costs, particularly through higher inventory holdings. This article examines the productivity gains from trade liberalizations accounting for inventory costs-typically omitted from revenue-based measures of productivity. In model simulations, we show that omitting these overestimates the effect of input tariffs on productivity and that controlling for inventories in the estimation of productivity corrects the bias. We document these facts during India's 1990s reforms. First, firms' inventories increase strongly with imports. Second, productivity gains drop by 20-50% once inventory costs are accounted for.