Trade, Quality Upgrading, and Input Linkages: Theory and Evidence from Colombia

S-Tier
Journal: American Economic Review
Year: 2018
Volume: 108
Issue: 1
Pages: 109-46

Authors (3)

Ana Cecília Fieler (not in RePEc) Marcela Eslava (Universidad de los Andes (Colo...) Daniel Yi Xu (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A quantitative model brings together theories linking international trade to quality, technology, and demand for skills. Standard effects of trade on importers and exporters are magnified through domestic input linkages. We estimate the model with data from Colombian manufacturing firms before the 1991 trade liberalization. A counterfactual trade liberalization is broadly consistent with post-liberalization data. It increases skill intensity from 12 to 16 percent, while decreasing sales. Imported inputs, estimated to be of higher quality, and domestic input linkages are quantitatively important. Economies of scale, export expansion, and reallocation of production are small and cannot explain post-liberalization data.

Technical Details

RePEc Handle
repec:aea:aecrev:v:108:y:2018:i:1:p:109-46
Journal Field
General
Author Count
3
Added to Database
2026-01-25