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Firms’ exporting and importing activities: is there a two-way relationship?

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  • David Aristei

    ()

  • Davide Castellani

    ()

  • Chiara Franco

    ()

Abstract

The literature on firm heterogeneity and trade has highlighted that most trading firms tend to engage in both importing and exporting activities. This paper provides some evidence that helps understanding to what extent this is the result of a two-way relationship. Using firm-level data for a group of 27 Eastern European and Central Asian countries from the World Bank Business Environment and Enterprise Performance Survey (BEEPS) over the period 2002–2008, we estimate a bivariate probit model of exporting and importing. After controlling for size (and other firm-level characteristics) we find that firms’ exporting activity does not increase the probability of importing, while the latter has a positive effect on foreign sales. This effect is mainly channeled through an increase in firm productivity and product innovation. Copyright Kiel Institute 2013

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 149 (2013)
Issue (Month): 1 (March)
Pages: 55-84

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Handle: RePEc:spr:weltar:v:149:y:2013:i:1:p:55-84

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Keywords: Export; Import; Firm heterogeneity; Eastern European and Central Asian countries; F14; F21; F23;

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Citations

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Cited by:
  1. Alessia Lo Turco & Daniela Maggioni, 2013. "On the Role of Imports in Enhancing Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 36(1), pages 93-120, 01.
  2. Alessia LO TURCO & Daniela MAGGIONI, 2012. "Imports, exports and the firm product scope: evidence from Turkey," Working Papers 384, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Kazunobu HAYAKAWA & Toshiyuki MATSUURA, 2014. "Dynamic Two-way Relationship between Exporting and Importing: Evidence from Japan," Working Papers DP-2014-08, Economic Research Institute for ASEAN and East Asia (ERIA).
  4. María D. Parra & Inmaculada Martínez-Zarzoso, 2014. "Imported intermediate inputs and Egyptian exports: Exploring the links," Working Papers 2014/09, Economics Department, Universitat Jaume I, Castellón (Spain).
  5. Giuliano CONTI & Alessia LO TURCO & Daniela MAGGIONI, 2012. "Rethinking the import-productivity nexus for Italian manufacturing," Working Papers 381, 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 376, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  7. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2014. "OECD imports: diversification of suppliers and quality search," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(1), pages 1-24, February.
  8. Italo Colantone & Rosario Crinò, 2011. "New Imported Inputs, New Domestic Products," Development Working Papers 312, Centro Studi Luca d\'Agliano, University of Milano.
  9. Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 150(2), pages 241-275, May.
  10. Joachim Wagner, 2013. "Micro-econometric studies of international firm activities and firm performance: introduction by guest editor," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(1), pages 1-3, March.
  11. Hayakawa, Kazunobu, 2012. "Firms' use of FTA schemes in exporting and importing : is there a two-way relationship?," IDE Discussion Papers 363, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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