Imports, Productivity and the Origin Markets -the role of knowledge-intensive economies
AbstractThis paper investigates whether domestic firms’ productivity is an increasing function of imports from the most knowledge intensive economies in the world, i.e. the G7 countries. Using Swedish firm-level data, we confirm an instantaneous causality going from imports to productivity. We also show that productivity is increasing in the G7-fraction of total imports. Our results highlight the importance of import flows from R&D and knowledge intensive economies for productivity and are consistent with imports being a vehicle for technology diffusion. Tests of the sensitivity of the results suggest that G7 imports are particularly important for firms in high-technology sectors and for firms belonging to multinationals and domestic corporations.
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Bibliographic InfoPaper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 146.
Length: 29 pages
Date of creation: 13 Oct 2008
Date of revision:
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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Technology diffusion; productivity; imports; panel data; GMM;
Find related papers by JEL classification:
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-21 (All new papers)
- NEP-CSE-2008-10-21 (Economics of Strategic Management)
- NEP-EFF-2008-10-21 (Efficiency & Productivity)
- NEP-INT-2008-10-21 (International Trade)
- NEP-KNM-2008-10-21 (Knowledge Management & Knowledge Economy)
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