International Economics Commons^™

Use Of Foreign Intermediate Inputs In Developing Countries: Determinants And Effects (Short Note), Mohammad Amin, Asif Islam, Po Yin Wong

Mohammad Amin

Theory suggests a number of channels through which use of foreign inputs could contribute to overall economic development and firm performance. However, empirical work on the use of foreign inputs, its determinants and effects is lacking. Using firm-level data from Enterprise Surveys on developing countries, this note highlights the extent to which firms rely on foreign inputs, how the reliance varies with country and firm characteristics and the impact of foreign inputs on firm productivity. Results show that the use of foreign inputs is common among private firms and especially so among the relatively large firms and firms in countries …