This paper studies the impact of input-trade liberalization on firms' decision to upgrade foreign technology embodied in imported capital goods. The empirical analysis is motivated by a simple theoretical framework of endogenous technology adoption, heterogeneous firms and imported inputs. The model predicts a positive effect of input tariff reductions on firms' technology choice to source capital goods from abroad. This effect is heterogeneous across...
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INFORMATION
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2016/11/07
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Document de travail de recherche sur les politiques
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WPS7883
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1
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1
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2016/11/07
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Disclosed
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Does input-trade liberalization affect firms' foreign technology choice ?
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capital good