The role of imported intermediate inputs in Indonesia’s manufacturing exports

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

PhD Seminar (Econ)

Date & time

Friday 30 November 2018


Seminar Room 1, Crawford School of Public Policy, 132 Lennox Crossing, ANU


Deasy Pane, PhD Scholar, Crawford School of Public Policy


Paul Burke, Economics PhD Seminar Convenor

This paper provides empirical evidence on the impact of imported intermediate inputs on firms’ manufacturing exports in Indonesia. The analysis employs import tariffs and real exchange rates as instruments, using a weighting procedure that utilises each industry’s use of imported inputs. Using firm-level data matched with detailed customs data for 2008–2012, the paper finds that import activities raise productivity and export performance. The effects are larger for imports from developed countries, suggestive of a positive effect of technology and product quality. Effects on exports to countries in East Asia are particularly large. Imported inputs thus help Indonesian firms to connect to regional value chains. Implications of the results will be discussed.

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