Abstract
AbstractUsing highly disaggregated firm‐level customs data for imports and exports in Peru over the 2000–12 period, we explore the relationship between imports of intermediate inputs and firm export performance. The evidence shows that greater use, variety and quality of imported intermediate inputs are significantly correlated with higher export levels and growth, greater market diversification and higher export quality at the firm level, even after controlling for unobserved firm heterogeneity. Exporter–importers exposed to higher tariffs, and non‐tariff measures import less in total and exhibit lower import variety, whereas those using an advance customs clearance procedure designed to facilitate imports exhibit higher imports and a more diversified bundle of inputs.
Highlights
Supported by the commodities boom and a raft of policy liberalizations, Peru experienced a decade of unprecedented growth that contributed to a significant poverty reduction
We find that the use of imported inputs is associated with higher productivity at the firm level
Using highly disaggregated firm-level customs transaction data for imports and exports in Peru over more than a decade, this paper explored the relationship between imports of intermediate inputs and firm export performance
Summary
Supported by the commodities boom and a raft of policy liberalizations, Peru experienced a decade of unprecedented growth that contributed to a significant poverty reduction. In this paper we explore the role of imported inputs for export performance in Peru We evaluate this relationship on the overall export sector in Peru as well as in two leading nonminerals export sectors - agribusiness, where Peru has achieved a strong position in global retail supply chains and apparel, Peru’s largest manufacturing export sector and among the most important sectors traded in GVCs. We use highly disaggregated exporter-level and importer-level customs transaction data for Peru over the period 2000-2012 to assess the relationship between imports of intermediate inputs and firm export performance, as measured by export size, export growth, market diversification, and export quality (relative unit prices).
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