This paper analyzes how access to imported inputs affects firms in developing countries, where domestically produced high-quality inputs are relatively costly. We build an O-Ring type model with quality complementarity across input tasks, ranking tasks by their quality sensitivity. Because...

What determines whether a new technology will be adopted by a wide array of sectors throughout the economy, turning it into a General Purpose Technology (GPT)? We build a model of endogenous innovation in a setup with heterogenous sectors. These are connected via input-output linkages, so that...