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On the Role of Imports in Enhancing Manufacturing Exports

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  • Alessia Lo Turco
  • Daniela Maggioni

Abstract

Making use of a large panel dataset on Italian manufacturing rms, we provide evidence on the effect of imports on the firm export performance. We distinguish imports of intermediates according to their origin and we find that inputs sourced from low labour cost countries promote the firms' export activity. Imports from high-income countries do not significantly contribute to the export orientation of firms, especially when persistence in export is considered and the possible endogeneity of the import measures is accounted for via System GMM estimation of a linear probability model. Our evidence suggests that the impact of imports on the firms' entry in export markets works through the cost saving channel rather than the technology channel.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 36 (2013)
Issue (Month): 1 (01)
Pages: 93-120

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Handle: RePEc:bla:worlde:v:36:y:2013:i:1:p:93-120

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Citations

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Cited by:
  1. Giuliano CONTI & Alessia LO TURCO & Daniela MAGGIONI, 2012. "Rethinking the import-productivity nexus for Italian manufacturing," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 381, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. Alessandro STERLACCHINI, 2012. "Patent Oppositions as Competitive Tools: An Analysis of the Major Players in the European Market of White Goods," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 374, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Díaz-Mora, Carmen & Córcoles, David & Gandoy, Rosario, 2014. "Exit from Exporting: Does Engagement in Transnational Networks Matter?," MPRA Paper 57642, University Library of Munich, Germany.
  4. Elena AMBROSETTI & Eralba CELA & Tineke FOKKEMA, 2011. "The Remittances Behaviour of the Second Generation in Europe: Altruism or Self-Interest?," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 368, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  5. Alberto RUSSO, 2012. "A Stochastic Model of Wealth Accumulation with Class Division," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 373, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  6. Alessia LO TURCO & Daniela MAGGIONI, 2012. "The micro evolution of trade and turnover in Turkey under the global crisis," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 376, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  7. David Aristei & Davide Castellani & Chiara Franco, 2013. "Firms’ exporting and importing activities: is there a two-way relationship?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 149(1), pages 55-84, March.
  8. Ruggero GRILLI & Gabriele TEDESCHI & Mauro GALLEGATI, 2012. "Markets connectivity and financial contagion," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 382, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  9. Eralba CELA & Tineke FOKKEMA & Elena AMBROSETTI, 2012. "Links Between Transnationalism Integration and Duration of Residence: The Case of eastern European Migrants in Italy," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 386, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  10. Alessia LO TURCO & Daniela MAGGIONI, 2012. "Imports, exports and the firm product scope: evidence from Turkey," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 384, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  11. Lenzu, Simone & Tedeschi, Gabriele, 2012. "Systemic risk on different interbank network topologies," Physica A: Statistical Mechanics and its Applications, Elsevier, Elsevier, vol. 391(18), pages 4331-4341.

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