Use this URL to cite or link to this record in EThOS:
Title: Trade liberalization, intermediate inputs and heterogeneous firms
Author: Imbruno, Michele
ISNI:       0000 0004 5359 9862
Awarding Body: University of Nottingham
Current Institution: University of Nottingham
Date of Award: 2014
Availability of Full Text:
Access from EThOS:
This thesis contributes to the literature on microeconomic linkage between globalization, economic growth and welfare. First, we study the impact of input trade liberalization on firm efficiency, aggregate productivity and welfare. We extend the Melitz (2003)'s framework to incorporate: a) trade in both intermediate inputs and final goods between similar countries, b) firm's decision to import intermediate inputs in addition to the decision to export the final output. This model shows different effects from reducing input tariffs, according to whether intermediates are assumed to be imported directly by final good firms or indirectly through an efficient wholesale system. Second, using data from Chinese manufacturing firms over the period 2002- 2006, we investigate empirically the effect of trade liberalization in intermediate inputs on firm's total factor productivity (TFP), considering the relevant role played by trade wholesalers. We document that direct-importers enjoy larger productivity gains from reducing input tariffs respect to other firms. But, the non-importers also benefit because they can access to foreign inputs through trade intermediaries. In sectors where input trade intermediation was relatively low, firms not directly involved in imports suffer efficiency losses. Finally, we also explore the effectiveness of different trade policy instruments on product-level Chinese imports over the period 2000-2006. More specifically, in addition to the declines in tariffs, we investigate the impact on imports of the gradual removal of non-tariff barriers (NTBs) as agreed within WTO's accession protocol in 2001 (such as import quotas, licenses and tendering). Overall, the results show that while manufacturing imports increased due to tariff cuts, agricultural imports grew thanks to the elimination of import licenses. We also find some complementarity between tariffs and NTBs.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available