Imports and Productivity PDF Download

Author: László Halpern
Publisher:
ISBN: 9789639588509
Category : Imports
Languages : en
Pages : 22

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Author: Mr.JaeBin Ahn
Publisher: International Monetary Fund
ISBN: 1475533098
Category : Business & Economics
Languages : en
Pages : 32

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Using the Korean manufacturing firm-level data, this paper confirms that three stylized facts on importing hold in Korea: the ratio of imported inputs in total inputs tends to be procyclical; the use of imported inputs increases productivity; and larger firms are more likely to use imported inputs. As a result, we find that firm-level import decisions explain a non-trivial fraction of aggregate productivity fluctuations in Korea over the period between 2006 and 2012. Main findings of this paper suggest a possible link between the recent global productivity slowdown and the global trade slowdown.

Author: Mr.JaeBin Ahn
Publisher: International Monetary Fund
ISBN: 148430196X
Category : Business & Economics
Languages : en
Pages : 13

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We analyze the impact on productivity in advanced economies of fast-growing trade with China between the mid-1990s and late-2000s, separately identifying the export and import channels. We use country-sector-level data for 18 advanced economies and, similar to Autor, Dorn, and Hanson (2013), exploit exogenous variation in trade with China in a given country-sector by instrumenting imports from (exports to) China in a given country-sector with the average imports from (exports to) China in the same sector in other advanced economies. Our estimates point to large productivity gains from trading with China—the (exogenous) rise of China in global trade may have increased the level of total factor productivity by about 1.9 percent, or 12.3 percent of the overall increase over the sample period, in the median country-sector. By contrast, using a similar empirical strategy, we find adverse employment effects of Chinese imports in exposed country-industries, consistent with previous studies. Taken together, these findings point to large gains from free trade, while underscoring the scope for a more active policy role in redistributing them, particularly by easing workers’ transition between jobs and industries.

Author: Marcel van den Berg
Publisher:
ISBN:
Category :
Languages : en
Pages : 37

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Using micro-data for Dutch firms, we argue that the productivity spillovers from importing technology intensive products from Taiwan differ from importing unskilled-labor intensive products from Switzerland. We show that both the geographic component (what country is the import from) and the intensity component (what type of good is imported) is crucial for measuring and understanding these spillovers. We show that increasing distance and decreasing levels of development of the origin economy negatively affect the diffusion of efficiency gains embodied in imported goods. Similarly, these gains are larger for technology intensive goods and smaller for unskilled-labor intensive goods. This implies that the geographic-intensity markets are unique and cannot be lumped together. In addition, a diversified import portfolio (the extensive dimension) is always positively associated with firm-level productivity.

Author: Wolfgang Keller
Publisher: International Monetary Fund
ISBN: 1451875894
Category : Business & Economics
Languages : en
Pages : 41

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We estimate international technology spillovers to U.S. manufacturing firms via imports and foreign direct investment (FDI) between 1987 and 1996. In contrast to earlier work, our results suggest that FDI leads to substantial productivity gains for domestic firms. The size of FDI spillovers is economically important, accounting for about 11 percent of productivity growth in U.S. firms between 1987 and 1996. In addition, there is some evidence for import-related spillovers, but it is weaker than for FDI spillovers. The paper also gives a detailed account of why our study leads to results different from those found in previous work. This analysis indicates that our results are also likely to apply to other countries and periods.

Author: Ana Margarida Fernandes
Publisher: World Bank Publications
ISBN:
Category : Adult learning
Languages : en
Pages : 48

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Fernandes explores Colombian trade policy from 1977-91, a period of substantial variation in protection across industries, to examine whether increased exposure to foreign competition generates plant-level productivity gains. Using a large panel of manufacturing plants, she finds a strong positive impact of tariff liberalization on consistent productivity estimates, controlling for plant and industry heterogeneity. This result is not driven by the endogeneity of protection nor by plant exit. The impact of tariff liberalization on productivity is stronger for large plants and for plants in less competitive industries. Qualitatively similar results are obtained when using effective rates of protection and import penetration ratios as measures of protection. This paper--a product of Investment Climate, Development Research Group--is part of a larger effort in the group to understand the links between trade and productivity.

Author: Ram C. Acharya
Publisher:
ISBN:
Category : Imports
Languages : en
Pages : 0

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In the wake of falling trade costs, two central consequences in the importing economy are, first, that stronger competition through increased imports can lead to market share reallocations among domestic firms with different productivity levels (selection). Second, the increase in imports might improve domestic technologies through learning externalities (spillovers). Each of these channels may have a major impact on aggregate productivity. This paper presents comparative evidence from a sample of OECD countries. We find that the average long run effect of an increase in imports on domestic productivity is close to zero. If the scope for technological learning is limited, the selection effect dominates and imports lead to lower productivity. If, however, imports are relatively technology-intensive, imports also generate learning that can on net raise domestic productivity. Moreover, there is somewhat less selection when the typical domestic firm is large. The results support models in which trade triggers both substantial selection and technological learning.

Author: Lauren Bresnahan
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 28

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Manufacturing is intensive in the use of reproducible factors and exhibits greater technological dynamism than primary production. As such, its growth is central to long-run development in low-income countries. African countries are latecomers to industrialization, and barriers to manufacturing growth, including those that limit trade, have been slow to come down. What factors contribute most to increases in output and productivity growth in African manufacturing? Recent trade–industrial organization theory suggests that trade liberalization should raise average total factor productivity (TFP) among manufacturing firms (Melitz 2003). However, these predictions are conditional on maintained assumptions about the nature of industries, factor markets, and trade patterns that may not be appropriate in a developing-country setting. Manufacturing firms are heterogeneous, so the analysis demands disaggregated data. We use firm-level data from the World Bank’s Regional Program on Enterprise Development, covering Ghana, Kenya, Nigeria, and Tanzania for 1991–2003. Among other things, the data distinguish exports by destination (Africa and the rest of the world), which is important due to the spread of intra-African regional trade agreements (RTAs). Econometric results confirm well-known relationships, such as a positive association between export intensity and TFP, which implies that more productive firms are more likely to select in to exporting. However, we also find the destination of exports to be important. Many exporters have experienced declining TFP growth rates, which have occurred at different rates depending on the country and the export destination. The evidence for “learning by exporting” is thus mixed. These results add a new dimension to controversies over the development implications of trade liberalization and the promotion of intra-African RTAs.

Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 210

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Author: Chandan Sharma
Publisher:
ISBN:
Category :
Languages : en
Pages : 21

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This study aims to analyse the role of imported inputs on productivity and export performance of the manufacturing industries of India. Our results indicate that imported inputs are crucial determinates of Total Factor Productivity (TFP). However, the impact varies greatly across industries. Furthermore, results regarding research and development (R&D) intensity suggest that inhouse R&D activities do not play a significant role in the productivity performance of Indian manufacturing firms. Our results also indicate that imports lead to a substantial growth in exports. In particular, exports in the chemical, machinery and transport equipment industries are highly dependent on imported intermediate goods. The results also indicate that although R&D is not linked with the productivity of industries, it has an important role in the export performance of these industries. TFP is also estimated to have a significant and sizable impact on export performance. This, in turn, supports the self-selection hypothesis, which explains the self-selection of more productive firms into the export market. Overall, our results support both hypotheses: learning by importing and self-selection in the import market.