import intensity paper

7/23/2019 Import Intensity Paper

1/18

Trade and Import Intensity Pattern Of Some Asian Countries : A

Comparative Study

Arun K. Sengupta*

Tushar Das**

Abstract

With increasing regional cooperation among the south Asian economies , there has

been tremendous rise in intermediate input flows across boundaries. In this context, import

intensities, domestic production structure and export composition , no doubt, play

important roles in determining the extent and pattern of international trade. This paper

investigates the factors that contribute to the difference in inter country trade pattern in the

year 200!0". The countries under consideration are #angladesh, $rilan%a and &hina. As we

have utilised the 'domestic input output matrices( made available by Asian )evelopment

#an%*A)#+ for getting a more correct proection of domestic output re-uirement and hence

the import re-uirement conse-uent to a certain export vector, possibly our results appear to

be robust enough. We observe that the import intensity of export*)irect and Induced+ of '

goods and services( is "./ percent for #angladesh, 22." percent for $rilan%a and .2

percent for &hina. As far as import intensity*)irect and Induced+ of '1oods( is concerned, it

is /.0" percent for #angladesh, 2"./ percent for $rilan%a and .3 for &hina. 4or the import

intensity *)irect and Induced+ of 'services(, we find that it is ." percent for #angladesh,

2.52 percent for $rilan%a and .05 percent for &hina.

6ur decomposition result reveals that though the difference in 'direct import

re-uirements( contributes significantly to the difference in import intensity of exports of#angladesh and $rilan%a, difference in 'domestic production structure( becomes a maor

contributor to the growth of difference in import intensity of export between $rilan%a and

&hina. The difference in 'export composition( significantly contributes to the change in

import intensity of exports between &hina and #angladesh.

* Formerly of ISI, Kolkata

** Faculty of Economics,SG Eduserve Pvt. Ltd. Mumbai

ut!ors are "rateful to t!e anonymous referee for t!e comments and su""estions #rovided for

im#rovin" t!e te$t and contents of t!e #a#er. %sual disclaimers a##ly t!at t!e aut!ors alone

res#onsible for any errors&mistakes still remainin" in t!e #a#er.

'!e Pa#er is t!e modified version of t!e Pa#er #resented in t!e ()t! In#ut+ut#ut

onference !eld at -IM'E, /nd 0 1t! May, /2(3.


2/18

1.1 INTRODCTION :

With increasing regional cooperation among the south Asian economies , there has

been tremendous rise in intermediate input flows across boundaries and import intensitiesof countries. In this context, domestic production structure and export composition , no

doubt, play important roles in determining the extent and pattern of international factor

flows. The basis of this increasing regional cooperation seems to have been closer political

and economic contacts and growing trade relations among the countries.

This paper investigates the factors that contribute to the differences in inter country

import intensity of exports in the year 200!0". The countries under consideration are

#angladesh, $rilan%a and &hina. As we have utilised the 'domestic input output matrices(made available by Asian )evelopment #an% for getting a more correct proection of domestic

output re-uirement and hence the import re-uirement conse-uent to a certain export vector,

possibly our results appear to be robust enough.

In $ection!. after highlighting the purpose of the paper, section !.2 discusses about

the methodological framewor% for our study. $ection!.5 deals with the sources of the data

base utili7ed in this exercise In section!., the results of the study have been interpreted.

4inally in section!.3 some concluding observations are made for the purpose of drawing a

few inferences for policy purposes.

1.! T"e #et"odo$o%ica$ &rame'or(

8eontief open input!output model obviously is a useful analytical tool for analy7ing

the import intensity of export. Total output from each industry e-uals total inter!industrial

demand plus the final demand. $o, we have the balance relations as follows9

m

:i ; >>.*+ where :i ; 6utput in the ith sector*in value terms+,

; i

4i ; 4inal )emand in the ith sector *in value terms+ and :i ; input flow from ith sector to

th sector

Assuming a production function with fixed coefficients ,

:i ; ai.: >>>>..*2+ where ai ; :i?:

#y substituting *2+ in *+ , gross output or sales of sector i can be expressed as 9

m

:i ; >*5+

; i

Therefore, : ; A: = 4 where :; *:i+, A ; *ai+ and 4 ; *4i+

2


3/18

6r, 4 ; : @ A: ; I: @ A: ; *I @ A+:

6r, : ; *I!A+!.4>>>..*+

In the e-uation *+ if 4 is prescribed from outside, the re-uired gross output levels :(s get

determined. 4or our present purpose it is not the entire 4inal )emand but the export part of

the final demand is relevant.

If :i*m+ ; Imported input of ith sector to th sector and if :i*t+ ; total supply of

input of ith sector to th sector and :i*d+ ; domestically produced input of ith sector to th

sector, we may write :i*d+ ; :i*t+ ! :i*m+

ow we may define m ; >>>>>>>>.*+

ext, we may li%e to separate out the contribution of difference in domestic

production structure reflected in Admatrix assuming unchanged direct import intensity and

export vector. 6bviously, the computation will be in the following way allowing only Ad*&+

to be changed to Ad*&2+.

5


4/18

m*&+.*I!Ad+!&2.e*&+ ! ! m*&+.*I!Ad+

!&.e*&+ >>>>>>>>>.*2+

In an analogous way, we separate out the contribution of inter country* pairwise +

difference in sectoral export share, the computation for which will be as follows allowing

only e*&+ being changed to e*&2+.

m*&+.*I!Ad+!&.e*&2+ ! m*&+.*I!Ad+

!&.e*&+ >>>>>>>>>.*5+

ow, the total decomposition exercise can be expressed in the following way

m*&2+.*I!Ad+!

&2 .e*&2+ ! m*&+.*I!Ad+!

&.e*&+; Cm*&2+.*I!Ad+!

&.e*&+! m*&+.*I!Ad+!

&.e*&+ D =

*contribution of direct import intensity difference+

Cm*&+.*I!Ad+!

&2.e*&+!m*&+.*I!Ad+!

&.e*&+D =Cm*&+.*I!Ad+!

&.e*&2+!m*&+.*I!Ad+!

&.e*&+D.*contribution of domestic production structure difference+ *contribution of difference in

the export composition+

We have decomposed the total import intensity difference in the above way for three

cases *three comparisons+ as stated below.

&omparison!I9 #angladesh!!$rilan%a

*&+ *&2+

&omparison!II9 $rilan%a!!!!!!!!&hina

*&+ *&2+

&omparison!III9 &hina!!!!!#angladesh

*&+ *&2+

1.) T"e Data *ase of t"e Study :

4or our empirical study of import intensity of exports, total inter industry

transaction Input!6utput tables * 200!0"+, Asian )evelopment #an% provide maor part of

the information re-uired for our purpose. The import matrices *200!0"+, Asian

)evelopment #an% are also available for use. The matrices *Transaction and import+ as

obtained from A)# for the year 200!0" are of order 3E3 and our study is based on the 3

sectors classification.


5/18

1.+ Resu$ts of t"e Study

This section of the paper is concerned with a discussion of the results contained in

Tables from to /.

Table! presents the direct import re-uirement per unit of goods, services and output

of various sectors of #angladesh for the year 200!0". We observe that '&lothing and

Wearing Apparel, and 8eather and 8eather Froducts( is the sector for which the direct import

content per unit of good is found to be significantly high. '#asic Getals, 4abricated Getals,

Gachinery, B-uipment and Apparatus( ran%s second. As far as direct import re-uirement

per unit of services are concerned, 'Transportation, &ommunication, and $upporting

$ervices( ran%s first. We observe that '&lothing and Wearing Apparel, and 8eather and

8eather Froducts( ran%s top in terms of direct import re-uirement per unit of output.Table!2 displays total *direct and induced+ import intensities per unit of goods,

services and output of #angladesh for the year 200!0" . It is observed that total *direct and

induced+ import intensities per unit of goods is found to be highest in '&lothing and Wearing

Apparel, and 8eather and 8eather Froducts( and it ran%s top . '#asic Getals, 4abricated

Getals, Gachinery, B-uipment and Apparatus( ran%s second.As far as direct import

re-uirement per unit of services are concerned, 'Transportation, &ommunication, and

$upporting $ervices( ran%s first and '4inancial Intermediation, Insurance and Auxiliary

$ervices( comes second. We observe that '&lothing and Wearing Apparel, and 8eather and

8eather Froducts( ran%s top and '#asic Getals, 4abricated Getals, Gachinery, B-uipment

and Apparatus( ran%s second in terms of direct import re-uirement per unit of output.

Table!5 presents the direct import re-uirement per unit of goods, services and outputof various sectors of $rilan%a for the year 200!0". We observe that 'Froducts of Wood, Faper

and Faper Froducts( is the sector for which the direct import content per unit of good is

found to be significantly high. '&lothing and Wearing Apparel, and 8eather and 8eather

Froducts( ran%s second. As far as direct import re-uirement per unit of services are

concerned, 'Transportation, &ommunication, and $upporting $ervices( ran%s first. We

observe that that 'Froducts of Wood, Faper and Faper Froducts( ran%s top in terms of direct

import re-uirement per unit of output.

3


6/18

Table! displays total *direct and induced+ import intensities per unit of goods,

services and output of $rilan%a for the year 200!0" . It is observed that total *direct and

induced+ import intensities per unit of goods is found to be highest in 'Froducts of Wood,

Faper and Faper Froducts( and it ran%s top . '&lothing and Wearing Apparel, and 8eather and

8eather Froducts( ran%s second.As far as direct import re-uirement per unit of services are

concerned, 'Transportation, &ommunication, and $upporting $ervices( ran%s first and 'Heal

Bstate, 8easing or Hental, and 6ther #usiness $ervices( comes second. We observe that

'Froducts of Wood, Faper and Faper Froducts( ran%s top and . '&lothing and Wearing

Apparel, and 8eather and 8eather Froducts( ran%s second in terms of direct import

re-uirement per unit of output.

Table!3 presents the direct import re-uirement per unit of goods, services and output

of various sectors of &hina for the year 200!0". We observe that '#asic Getals, 4abricated

Getals, Gachinery, B-uipment and Apparatus( is the sector for which the direct import

content per unit of good is found to be significantly high. '&lothing and Wearing Apparel,

and 8eather and 8eather Froducts( ran%s second. As far as direct import re-uirement per

unit of services are concerned, 'Transportation, &ommunication, and $upporting $ervices.(

ran%s second. We observe that '#asic Getals, 4abricated Getals, Gachinery, B-uipment and

Apparatus ( ran%s top in terms of direct import re-uirement per unit of output.

Table! displays total *direct and induced+ import intensities per unit of goods,

services and output of &hina for the year 200!0" . It is observed that total *direct and

induced+ import intensities per unit of goods is found to be highest in '#asic Getals,

4abricated Getals, Gachinery, B-uipment and Apparatus( and it ran%s top . '&lothing and

Wearing Apparel, and 8eather and 8eather Froducts( ran%s second. As far as direct import

re-uirement per unit of services are concerned, 'Transportation, &ommunication, and$upporting $ervices( ran%s second and '6ther $ervices( comes first. We observe that '#asic

Getals, 4abricated Getals, Gachinery, B-uipment and Apparatus( ran%s top and . '&lothing

and Wearing Apparel, and 8eather and 8eather Froducts( ran%s second in terms of direct

import re-uirement per unit of output.

Table !" presents the estimates of total*direct and induced+ import intensity of export

of #angladesh, $rilan%a and &hina for the year 200!0".


7/18

Tab$e,-

Total *)irect and Induced+ Import Intensity of Bxport of #angladesh, $rilan%a &hina

#angladesh $rilan%a &hina

Import Intensity of Bxports * of 1oods bas%et

only + 0.0/0" 0.2"/ 0.03

*/.0"+ *2"./+ *.3+

Import Intensity of Bxports *of bas%et of

services export only + 0.00" 0.0252 0.0005

*0."+ *2.52+ *0.05+

Import Intensity of Bxports * of the bas%et

whole + 0.0"/ 0.22" 0.0

*"./+ *22."+ *.2+

$ource9 Author(s 6wn &alculations

As indicated in the table!", the total*direct and indirect+ import intensity of export of

goods is highest for $rilan%a *2"./ percent+ followed by #angladesh*/.0" percent+ and

&hina *.3 percent+. As expected, the import intensity of services is insignificant for the

countries. The total*direct and indirect+ import intensity of export of output is highest for

$rilan%a *22." percent+ followed by #angladesh*"./ percent+ and &hina *.2 percent+. The

import intensity of exports are depicted in #ar )iagram .

4ig.! " 4

#ar )iagram $howing Import Intensity of Bxports

The observed increase may be explained in terms of the change in the composition of

exports in favour of goods with high import intensity or increase in the import intensities of

the industries or in terms of the change in the production structure. We have estimated the

relative contribution of each separately and have discussed the same in the interpretation of

decomposition results.

"


8/18

Decomposition Resu$ts :

Table!/ reflects the import intensity of export growth decomposition between the

countries namely #angladesh and $rilan%a, $rilan%a and &hina and &hina and #angladesh. .

)iagramed &harts for the same are presented in the 4igures also.

A loo% into the table!/ and the figures /4, /42 and /45 reveal the following 9 In

case of comparison!I *#angladesh!$rilan%a+, the magnitude of total import intensity

difference was of the order 3 percent. 6ut of this, as table!/ shows, direct import intensity

difference accounts for "2.0 percent . Jowever, an insignificant part of the increased total

import intensity contributed exclusively by direct import intensity was cancelled out by the

opposite impact of difference in production structure* percent+ but a significant part of the

increased total import intensity contributed exclusively by direct import intensity was

cancelled out by the opposite impact of difference in export composition*33 percent+.

4or comparison!II*$rilan%a!&hina+, we find that the magnitude of total import intensity

difference was of the order *!+ percent. 6ut of this difference , direct import intensitydifference accounts for *!+2 percent . #ut a significant part of the increased total import

intensity is contributed exclusively by domestic production structure*2" perecnt+ . Bxport

composition difference contributes *!+22 percent .

We find a different picture regarding the role of contributing factors towards total

difference in import intensity in comparison!III*&hina! #angladesh+ The magnitude of total

import intensity difference , in comparison!III, was of the order . percent. 6ut of this,

direct import intensity difference accounts for *!+.2" percent+ . A small part of the total

difference in import intensity is accounted for the difference in domestic production

structure* 2 percent+. The increased total import intensity contributed exclusively by export

composition was 5 percent.

4ig.!/4 )ecomposition of the )ifference of Import Intensity of Bxports

&omparison @I*#angladesh!$rilan%a+

$ource 9 Table!/

/


9/18

4ig!/42

)ecomposition of the )ifference of Import Intensity of Bxports

&omparison!II*$rilan%a!&hina+

$ource 9 Table!/

4ig!/45

)ecomposition of the )ifference of Import Intensity of Bxports

&omparison!III*&hina!#angladesh+

$ource 9 Table!/


10/18

.3 Conc$usion

In this paper, we have examined the direct import intensity as well as the direct and

induced import intensity of the industries , growth of import intensity of exports and its

decomposition for three countries namely #angladesh, $rilan%a and &hina. The broad

implications of this study can be summari7ed as follows!

. We have used in our study the I!6 tables prepared by Asian )evelopment #an% for the

year 200!0". we have collected the import matrices for the said year from A)# . $o, we

are in a position to use domestic I!6 tables to find out domestic input re-uirements and in

that sense, we hope that our result seems to be robust enough and dependable.

2. The direct import re-uirement per unit of output as well as the direct and induced

import re-uirement per unit of sales is found to be highest for '&lothing and Wearing

Apparel, and 8eather and 8eather Froducts( in #algladesh, for 'Froducts of Wood, Faper and

Faper Froducts( in $rilan%a and for '#asic Getals, 4abricated Getals, Gachinery, B-uipment

and Apparatus( in &hina.

5. The total*direct and indirect+ import intensity of exports of output is highest for

$rilan%a *22." percent+ followed by #angladesh*"./ percent+ and &hina *.2 percent+.

. We have decomposed the difference in import intensity of export between

#angladesh and $rilan%a *&omparison!I+, $rilan%a and &hina *&omparison!II+ and &hina

and #angladesh *&omparison !III+. We note that while difference in production structure

contributes significantly to the difference in import intensity of export between #angladesh

and $rilan%a, it is domestic production structure for $rilan%a and &hina and export

composition for &hina and #angladesh.

References: corrected on /0/ some c$arifications reuired2

#hattacharyaa, G. */+. Import Intensity of Bxports9 A case $tudy of Indian Bconomy,

Indian Economic 4ournal, 5.

#asu, K. *5+. $tructural Heform in India, !59 Bxperience and Agenda. Bconomic

and Political 5eekly, .

#haradwa , H. *2+. Structural -asis of India6s Forei"n 'rade. Lniversity of #ombay.

Gumbai

1hosh, A. *0+.E$#eriments 7it! In#ut+ut#ut Models. &ambridge Lniversity Fress.

0


11/18

Ja7ari, #., H. *0+. Import Intensity of &onsumption. '!e Indian Economic 8evie7, 3!

"

Gani, $. *+. Bxport 8iberali7ation and Import )ependence 9 A ote. Economic and

Political 5eekly,Muly, !5.

Hasmussen, F., orregaard. *3"+. Studies in International 8elations

msterdam.orth Jolland Fublishing &ompany.

$athe, ). *"+. Import Intensity of Bxports 9 $ome 4resh Bvidence.Economic and

Political 5eekly, 4eb, 52*/+

$home, F., Gu%hopadhaya, J. */+. Bconomic 8iberalisation of the 0(s ,

$tabilisation and $tructural Aspects and $ustainability of Hesults.Economic and Political

5eekly,Muly,/*2+, 23! 5.


12/18

Tab$e,1

Direct Import Reuirement per nit of Output of various Sectors of *an%$ades"3 !445,4-

Ran(s are in Descendin% Order2

$l.

o $ectors 1oods Han% $ervices

Han%

*1oods

=$ervices+

Han%

Agriculture, 4orestry and 4ishery

Froducts 0.005/ 3 0.00003

0.005/3

2Froducts of Gining and

Nuarrying 0.0005 / 0.0000

0.0005

54ood, #everages and Tobacco

Froducts 0.00 " 0.00000

0.00

&lothing and Wearing Apparel,

and 8eather and 8eather Froducts 0.0/0 1 0.00003

0.0/01

3 Froducts of Wood, Faper andFaper Froducts 0.003 0.0000 0.003 "

#asic Getals, 4abricated Getals,

Gachinery, B-uipment and

Apparatus 0.05/ 2 0.0000

"

0.05/

2

" 6ther Ganufacturing 0.022 5 0.0000 0.022 5

/Blectricity, Town 1as, $team and

Jot Water 0.0000 0.00002

0.00002

Water 0.0000 0 0.0000 0.0000 5

0 &onstruction $ervices 0.0000 0.0000 / 0.0000

Wholesale and Hetail Trade

$ervices 0.0000 2 0.0000 5 0.0000 3

2Transportation, &ommunication,

and $upporting $ervices 0.005 0.0001

0.00"

54inancial Intermediation,

Insurance and Auxiliary $ervices 0.0000 5 0.0022

0.002

Heal Bstate, 8easing or Hental,

and 6ther #usiness $ervices 0.0000 0.005

0.00/

3 6ther $ervices, n.e.c. 0.0000 3 0.000/ 0.000/ 0


2


13/18

Tab$e,!

Direct and Induced Import Reuirement per nit of Output of various Sectors of *an%$ades"3

!445,4- Ran(s are in Descendin% Order2

$l.


Han

%

Total

6utput Han%

Agriculture, 4orestry and

4ishery Froducts 0.003

0.0003

0.003


Nuarrying 0.005

0.000

0.003


Froducts 0.00"

0.00050

0.00""


and 8eather and 8eather

Froducts 0.02

1

0.000"

3

0.0/

1

3Froducts of Wood, Faper and

Faper Froducts 0.00/2

0.0003 0.00/3

#asic Getals, 4abricated

Getals, Gachinery, B-uipment

and Apparatus 0.05/5

2

0.000

"

0.05/"

2

" 6ther Ganufacturing 5 0.000 0.02/ 5

/Blectricity, Town 1as, $team

and Jot Water 0.00"

0.0002

0.00/2

Water 0.003 2 0.0002 0.00" 5

0 &onstruction $ervices 0.00 / 0.000 / 0.00 /


$ervices 0.000

0.0005

0.0003

2

Transportation,

&ommunication, and

$upporting $ervices 0.00/

3

0.00

1

0.02

5


Insurance and Auxiliary

$ervices 0.00"

0

0.002"

2

0.00


and 6ther #usiness $ervices 0.00033

0.0035

0.0020

3 6ther $ervices, n.e.c. 0.00/ 0.000 0.002/ 0


5


14/18

Tab$e,)

Direct Import Reuirement per nit of Output of various Sectors of Sri$an(a3 !445,4-

Ran(s are in Descendin% Order2$l.


Han

%

Total

6utput Han%


Froducts 0.00"

0.00003

0.00"


Nuarrying 0.3

0.0000

0.3


Froducts 0.005/

0.0000"

0.005


and 8eather and 8eather

Froducts 0."32/

2

0.0000

/

0."32/

2

3Froducts of Wood, Faper and

Faper Froducts 0.55

0.0000

0.55



Apparatus 0.30

5

0.0000

0

0.30

5

" 6ther Ganufacturing 0.00 3 0.0000 0.00 3


Jot Water 0.00000

0.00002

0.0000

Water 0.0000 0.0000 5 0.0000 2

0 &onstruction $ervices 0.0000 0.0000 0.0000 5


$ervices 0.00002

0.00003

0.00003


and $upporting $ervices 0.05

0.0230

0.05/3


Insurance and Auxiliary $ervices 0.00005

0.00025

0.00020


and 6ther #usiness $ervices 0.0000

0.00/2

0.00//

3 6ther $ervices, n.e.c. 0.0000 3 0.0000 0.0000



15/18

Tab$e,+

Direct and Induced Import Reuirement per nit of Output of various Sectors of Sri$an(a3


$l.


Han

%

Total

6utput Han%


Froducts 0.022"/

0.000/

0.0253/

2 Froducts of Gining and Nuarrying 0.35 0.000" 3 0.3"


Froducts 0.030

0.002

0.0"

2

&lothing and Wearing Apparel, and

8eather and 8eather Froducts 0./502

0.00"

0./5222

3Froducts of Wood, Faper and Faper

Froducts 0.//

0.00/

0.



Apparatus 0.25

5

0.00

0.50

5

" 6ther Ganufacturing 0.00 3 0.0020 3 0.02 3


Jot Water 0.03

0.0022

0.020"

Water 0.00/ 0.002 5 0.00 0 &onstruction $ervices 0.05/ " 0.00 0.05/2 "


$ervices 0.003

0.000

0.00""3


and $upporting $ervices 0.05

0.02/

0.03

54inancial Intermediation, Insurance

and Auxiliary $ervices 0.0005

0.00"

0.0"5

Heal Bstate, 8easing or Hental, and

6ther #usiness $ervices 0.022

0.00"2

0.025

3 6ther $ervices, n.e.c. 0.00 0 0.005 5 0.022 0$ource9 Author(s 6wn &alculations

3


16/18

Tab$e,6

Direct Import Reuirement per nit of Output of various Sectors of C"ina3 !445,4-

Ran(s are in Descendin% Order2

$l.

o $ectors 1oods Han% $ervices Han%

Total

6utput Han%


Froducts 0.000"/

0.00003

0.000"

2 Froducts of Gining and Nuarrying 0.00 3 0.0000 0.00 3


Froducts 0.002

0.0000"

0.002


8eather and 8eather Froducts 0.02"2

0.0000/

0.02"2


Froducts 0.00

0.0000

0.00

#asic Getals, 4abricated Getals,Gachinery, B-uipment and

Apparatus 0.030"

0.0000

0

0.030"

" 6ther Ganufacturing 0.0" 5 0.0000 0.0" 5


Jot Water 0.0000

0.00002

0.00002

Water 0.0000 0 0.0000 5 0.0000 5

0 &onstruction $ervices 0.0000 0.0000 0.0000

Wholesale and Hetail Trade $ervices 0.0000 2 0.0000 0.0000

2Transportation, &ommunication, and

$upporting $ervices 0.00"

0.00032

0.00/"


and Auxiliary $ervices 0.00005

0.00025

0.00020



0.00003

0.00003

3 6ther $ervices, n.e.c. 0.0000 3 0.00 0.00 /



17/18

Tab$e,5

Direct and Induced Import Reuirement per nit of Output of various Sectors of C"ina


$l.o $ectors 1oods Han% $ervices

Han%

Total6utput Han%


Froducts 0.00/5

0.0003

0.00/

2 Froducts of Gining and Nuarrying 0.02/" 3 0.0002 0.02/ 3


Froducts 0.022

0.00025

0.02/2


8eather and 8eather Froducts 0.03202

0.0005

0.03252


Froducts 0.050

0.0005

/

0.052



Apparatus 0.02"

0.0005

"

0.02

" 6ther Ganufacturing 0.05"3 5 0.0002 0 0.05"/ 5


Jot Water 0.0220"

0.00022

0.0222"

Water 0.0"" 0 0.0002 0.0" 0

0 &onstruction $ervices 0.02/2 0.0005 3 0.02/3

Wholesale and Hetail Trade $ervices 0.053 0.000 0.05

2Transportation, &ommunication, and

$upporting $ervices 0.03 / 0.000" 2 0.0202 /


and Auxiliary $ervices 0.00//5

0.00035

0.0055



0.0002

0.0033

3 6ther $ervices, n.e.c. 0.0/2 0.00 0.020


"


18/18

Tab$e,/

T"e Decomposition of t"e c"an%e in Import Intensity of 78ports

&omparison!I

&omparison!

II

&omparison!

III

#angladesh!

$rilan%a

$rilan%a!!

&hina

&hina

!#angladesh A+ Total Import Intensity difference *=+0.33 *!+0.30 *=+0.00

a+ &ontribution of )irect Import *=+0."2"3 *!+0.2 *!+0.002"

Intensity difference assuming export

composition and )omestic Froduction

$tructure unchanged for the base

country

b+ &ontribution of difference in

)omestic *!+0.05 *=+0.2"5" *!+0.02 Froduction $tructure assuming

$ectoral export share and )irect Import

Intensity unchanged for the base

country

c+ &ontribution of difference in

$ectoral $hare *!+0.333" *!+0.2225 *=+0.05/

of Bxport assuming )irect Import

Intensity and Froduction $tructure

Lnchanged for the base country

#+ $um of *a = b = c+ *=+0.33 *!+0.30 0.00


/

import intensity paper

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