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Imported Intermediate Inputs, R&D, and Productivity at Firm Level: Evidence from Indian Manufacturing Industries

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  • Chandan Sharma

Abstract

This article examines the effects of imported intermediary inputs and in-house research and development (R&D) on productivity growth, using firm-level data from Indian manufacturing industries for the period 2000-09. For this purpose, we adopted two empirical frameworks: production function and growth accounting method. The estimated results from the production function framework suggest that the impact of imported intermediary goods on output is reasonably sizable. The role of R&D activities under this framework is found to be insignificant. The analysis based on the growth accounting suggests that total factor productivity of firms is linked with import and R&D activities.

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  • Chandan Sharma, 2014. "Imported Intermediate Inputs, R&D, and Productivity at Firm Level: Evidence from Indian Manufacturing Industries," The International Trade Journal, Taylor & Francis Journals, vol. 28(3), pages 246-263, March.
    • Handle: RePEc:taf:uitjxx:v:28:y:2014:i:3:p:246-263
    DOI: 10.1080/08853908.2014.891958
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    References listed on IDEAS

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    1. Van Biesebroeck, Johannes, 2008. "The Sensitivity of Productivity Estimates," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 311-328.
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    5. Ram C. Acharya & Wolfgang Keller, 2009. "Technology transfer through imports," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(4), pages 1411-1448, November.
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    Cited by:

    1. Lopamudra D. Satpathy & Bani Chatterjee & Jitendra Mahakud, 2017. "Firm Characteristics and Total Factor Productivity: Evidence from Indian Manufacturing Firms," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 11(1), pages 77-98, February.
    2. Chandan Sharma, 2016. "R&D, Technology Transfer And Productivity In The Indian Pharmaceutical Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-24, January.
    3. Kawaljeet Kaur & Swati Mehta, 2023. "Modes of Technology Accumulation, Total Factor Productivity and Indian Manufacturing Sector: Firm-Level Analysis," Journal of South Asian Development, , vol. 18(1), pages 7-43, April.
    4. Sharma, Chandan & Paramati, Sudharshan Reddy, 2021. "Does economic policy uncertainty dampen imports? Commodity-level evidence from India," Economic Modelling, Elsevier, vol. 94(C), pages 139-149.
    5. Awadhesh Pratap SINGH, 2016. "Do Technology Spillovers Accelerate Performance of Firms? Unravelling a Puzzle from Indian Manufacturing Industry," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 108-120.
    6. Mitra, Arup & Sharma, Chandan & Véganzonès-Varoudakis, Marie-Ange, 2016. "Infrastructure, information & communication technology and firms’ productive performance of the Indian manufacturing," Journal of Policy Modeling, Elsevier, vol. 38(2), pages 353-371.
    7. Bhattacharya, Mita & Okafor, Luke Emeka & Pradeep, V., 2021. "International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms," Economic Modelling, Elsevier, vol. 97(C), pages 1-13.
    8. Quang-Thanh Ngo & Canh Thi Nguyen, 2020. "Do export transitions differently affect firm productivity? Evidence across Vietnamese manufacturing sectors," Post-Communist Economies, Taylor & Francis Journals, vol. 32(8), pages 1011-1037, November.
    9. Arup Mitra & Chandan Sharma, 2020. "Employment and TFP Impact of Technologies in the Developing World: Domestic versus Imported Expertise," IEG Working Papers 410, Institute of Economic Growth.
    10. Asmita Goswami & K. Narayanan, 2022. "Technological Efforts, Firm Ownership and Productivity: A Study of Information Technology Service Firms in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 23(1), pages 86-109, March.
    11. C Sharma, 2016. "Does importing more inputs raise productivity and exports? Some evidence from Indian manufacturing," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 1-23, March.
    12. Sharma, Chandan & Mishra, Ritesh Kumar, 2015. "International trade and performance of firms: Unraveling export, import and productivity puzzle," The Quarterly Review of Economics and Finance, Elsevier, vol. 57(C), pages 61-74.
    13. Doki, Naomi Onyeje & Shitile, Tersoo Shimonkabir & Sule, Abubakar, 2021. "Imported Intermediate Inputs and Manufactured Exports in Nigeria: The Role of Dual Exchange Rate Regime," African Journal of Economic Review, African Journal of Economic Review, vol. 9(1), January.
    14. Chandan Sharma & Ritesh Kumar Mishra, 2023. "Imports, technology, and employment: Job creation or creative destruction," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 152-170, January.
    15. Manghnani,Ruchita, 2020. "Exports and Productivity : The Role of Imported Inputs and Investment in R&D," Policy Research Working Paper Series 9281, The World Bank.

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