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Trade, Technology and Input Linkages: A Theory with Evidence from Colombia
April 28, 2016Macro, Trade, and Finance Seminar Series

Speaker: Ana Cecilia Fieler is an Assistant Professor of Economics at University of Pennsylvania. More »

Abstract: Mechanisms linking international trade to technology are amplified through input-output linkages. Trade shifts production toward technologically-advanced importers and exporters and induces these firms to upgrade. Assuming that technologically-advanced goods use intensively advanced inputs, these shifts increase demand and supply of advanced inputs, thereby leading other firms to upgrade. We formalize this amplification mechanism in a model with heterogeneous firms and endogenous technology choices. We estimate the model using data on Colombian manufacturing plants before the trade liberalization and simulate a counterfactual liberalization. Domestic input linkages are key to explain the data-a widespread increase in skill intensity combined with a sharp contraction in sales.

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Last Updated: Apr 21, 2016

The Macro, Trade, and Finance Seminar Series is a weekly series hosted by the World Bank's research department. The series invites leading researchers from the fields of macroeconomics, growth, trade, international integration, and finance to present the results of their most recent research in a seminar format. The full list of seminars can be viewed here.

Last Updated: Jul 27, 2015

Event Details
  • Date: April 28, 2016
  • Location: MC 5-100
  • Time: 12:30 – 2:00 pm
  • CONTACT: Shweta Mesipam
  • smesipam@worldbank.org

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