The effects of input tariffs on productivity: panel data evidence for OECD countries

Maria Bas (1) , Asa Johansson (2) , Giuseppe Nicoletti (2) , Fabrice Murtin (3)

1 CES - Centre d'économie de la Sorbonne
2 OCDE - Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development
3 CREST - Centre de Recherche en Économie et Statistique

Based on a panel of 16 OECD countries and 10 manufacturing industries over 1996–2007, this paper investigates the impact of tariffs on foreign intermediate goods on productivity growth in downstream manufacturing industries. The results show that imposing tariffs on imported intermediate goods is particularly harmful for industries that operate close to the global technological frontier. We also consider the possibility that input-tariff liberalisation may have different effects depending on the technological content of imported intermediate goods. Our findings suggest that protecting imports of high-technological goods is more harmful for productivity improvements in industries that operate close to global best practice.

Mots clés: Catching-up; Growth; Productivity; Intermediate input tariff; Trade

Domaines: Sciences de l'Homme et Société; Economies et finances

Maria Bas, Asa Johansson, Giuseppe Nicoletti, Fabrice Murtin. The effects of input tariffs on productivity: panel data evidence for OECD countries. Review of World Economics, 2016, 152 (2), pp.401-424. ⟨10.1007/s10290-016-0247-z⟩. ⟨hal-01297161⟩