This paper explores the impact of input trade liberalization on export product scope of firms\nin industries with different scope for product differentiation. Firm- and industry-specific\ntariffs are measured to reflect cost effect (intensive margin) and new input effect (extensive\nmargin) of input tariff reductions. Using tariff data and product-level trade data for\n2002-2006, we find that while firms in differentiated product scope expand export product\nlines greatly, firms in non-differentiated product sector do not expand export product scope\nsignificantly, which is robust to different definitions of varieties.
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