Imports of Intermediate Inputs and Spillover Effects: Evidence from Chilean Plants

Abstract

This paper uses plant-level data from Chile to examine the determinants of importing intermediate inputs paying special attention to the role of importing spillovers. The results show that plants that pay higher wages and plants with previous experience importing intermediate inputs are more likely to import inputs. This study also finds a positive correlation between the number of importers in the same region, regardless of their industry affiliation, and the probability of importing intermediate inputs. This suggests that importing spillovers may be important, at least in the case of Chilean manufacturing.

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