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Imports and TFP at the Firm Level: The Role of Absorptive Capacity

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  • Augier, Patricia
  • Cadot, Olivier
  • Dovis, Marion

Abstract

This paper estimates the effect of the decision to import intermediate goods and capital equipment on Total Factor Productivity (TFP) at the firm level on a panel of Spanish firms (1991-2002). We use two alternative approaches. In the first, we estimate TFP and apply a diff-in-diff estimator with a control group constructed by propensity-score matching. In the second, direct method, we estimate TFP with imported inputs as a state variable in one stage. Both approaches show that the effect of a firm’s decision to source intermediates and capital equipment abroad on its TFP depends critically on its capacity to absorb technology, measured by the proportion of skilled labor.

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Bibliographic Info

Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Docweb) with number 1016.

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Length: 34 pages
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:cpm:docweb:1016

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Keywords: Productivity; TFP; Imports; Olley-Pakes; Absorptive Capacity;

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Citations

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Cited by:
  1. Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KAHN, 2011. "Trade Diversification, Income, and Growth: What Do We Know?," Working Papers P33, FERDI.
  2. Ricardo Argüello, 2013. "Trade diversification in Colombia, 1991-2011," DOCUMENTOS DE TRABAJO 011016, UNIVERSIDAD DEL ROSARIO.
  3. 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.
  4. Wagner, Joachim, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," IZA Discussion Papers 5916, Institute for the Study of Labor (IZA).
  5. María D. Parra & Inmaculada Martínez-Zarzoso, 2014. "Imported intermediate inputs and Egyptian exports: Exploring the links," Working Papers, Economics Department, Universitat Jaume I, Castellón (Spain) 2014/09, Economics Department, Universitat Jaume I, Castellón (Spain).
  6. Carlos Carreira, 2013. "Learning, Exporting and Firm Productivity: Evidence from Portuguese Manufacturing and Services Firms," GEMF Working Papers 2013-23, GEMF - Faculdade de Economia, Universidade de Coimbra.
  7. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2013. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing Firms," wiiw Working Papers, The Vienna Institute for International Economic Studies, wiiw 105, The Vienna Institute for International Economic Studies, wiiw.
  8. Maria Bas & Vanessa Strauss-Kahn, 2014. "Does importing more inputs raise exports? Firm-level evidence from France," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 150(2), pages 241-275, May.

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