Based on input/output tables that contain disaggregated data from 45 industries grouped into 16 sectors from 1995 to 2020 across 66 countries, we carry out a gravity analysis to examine how imported inputs affect bilateral exports. In terms of econometric methodology, we use pseudo Poisson maximum likelihood (PPML) as well as Instrumental-Variable Tobit methods. Our results consistently show a positive and significant effect of imported inputs on bilateral exports. JEL Codes: F10, F40
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Kitenge et al. (2024) studied this question.
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