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

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  • Patricia AUGIER

    (FERDI)

  • Olivier CADOT

    (Faculté des hautes études commerciales - Université de Lausanne)

  • Marion DOVIS

    (FERDI)

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 capacit y to absorb technology, measured by the proportion of skilled labor.

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Paper provided by FERDI in its series Working Papers with number P44.

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Date of creation: Apr 2012
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Handle: RePEc:fdi:wpaper:517

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Cited by:
  1. Ricardo Argüello, 2013. "Trade diversification in Colombia, 1991-2011," BORRADORES DE INVESTIGACIÓN 011019, UNIVERSIDAD DEL ROSARIO.
  2. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2013. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing Firms," wiiw Working Papers 105, The Vienna Institute for International Economic Studies, wiiw.
  3. Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KHAN, 2009. "Trade Diversification, Income, and Growth: What Do We Know?," Working Papers 200931, CERDI.
  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. David Aristei & Davide Castellani & Chiara Franco, 2011. "Firms' exporting and importing activities: is there a two-way relationship?," Quaderni del Dipartimento di Economia, Finanza e Statistica 99/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  6. 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).
  7. 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.
  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, vol. 150(2), pages 241-275, May.

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