Academic Journal
The downstream impact of upstream tariffs: Evidence from investment decisions in supply chains
| العنوان: | The downstream impact of upstream tariffs: Evidence from investment decisions in supply chains |
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| المؤلفون: | MARTIN, Thorsten, OTTO, Clemens A. |
| المصدر: | Research Collection Lee Kong Chian School Of Business |
| بيانات النشر: | Institutional Knowledge at Singapore Management University |
| سنة النشر: | 2024 |
| المجموعة: | Institutional Knowledge (InK) at Singapore Management University |
| مصطلحات موضوعية: | Import Tariffs, Investment, International Supply Chains, Trade in Intermediate Inputs, Finance and Financial Management, Operations and Supply Chain Management |
| الوصف: | We study how US manufacturing firms' investment responds to tariff reductions in supplier industries. Our estimates, based on tariff reductions following multinational trade agreements, suggest that a hypothetical 10% reduction of all upstream tariffs would increase downstream investment by 4% to 6%. This estimate is not explained by decreasing uncertainty and stems from tariff reductions for homogeneous and low-R\&D inputs, consistent with the investment response resulting from cost reductions rather than superior foreign technology embodied in imported inputs. Evidence from an instrumental variable estimation using the sudden increase in Chinese import penetration suggests that import competition also increases downstream investment. |
| نوع الوثيقة: | text |
| وصف الملف: | application/pdf |
| اللغة: | English |
| Relation: | https://ink.library.smu.edu.sg/lkcsb_research/7265; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8264/viewcontent/the_downstream_impact_of_upstream_tariffs_evidence_from_investment_decisions_in_supply_chains.pdf |
| DOI: | 10.1017/S0022109023000777 |
| الاتاحة: | https://ink.library.smu.edu.sg/lkcsb_research/7265 https://doi.org/10.1017/S0022109023000777 https://ink.library.smu.edu.sg/context/lkcsb_research/article/8264/viewcontent/the_downstream_impact_of_upstream_tariffs_evidence_from_investment_decisions_in_supply_chains.pdf |
| Rights: | http://creativecommons.org/licenses/by/4.0/ |
| رقم الانضمام: | edsbas.1BE2E2B4 |
| قاعدة البيانات: | BASE |
| DOI: | 10.1017/S0022109023000777 |
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