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Does the use of imported intermediates increase productivity? Plant-level evidence

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  • Kasahara, Hiroyuki
  • Rodrigue, Joel

Abstract

This paper examines whether importing intermediate goods improves plant performance. While addressing the issue of simultaneous productivity shocks and decisions to import intermediates, we estimate the impact foreign intermediates have on plants' productivity using plant-level Chilean manufacturing panel data. Across different estimators, we find evidence that becoming an importer of foreign intermediates improves productivity.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 87 (2008)
Issue (Month): 1 (August)
Pages: 106-118

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Handle: RePEc:eee:deveco:v:87:y:2008:i:1:p:106-118

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Web page: http://www.elsevier.com/locate/devec

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