Advanced Search
MyIDEAS: Login to save this paper or follow this series

Productivity dispersion and its determinants: the role of import penetration

Contents:

Author Info

  • Daniela, Maggioni

Abstract

The new heterogeneous firm models in international economics suggest a negative impact of trade openness on the within-sector disparities, due to a restructuring process leading to a resources reallocation toward high efficient firms and the exit of less productive ones. I test this hypothesis for the Italian manufacturing sectors making use of both static and dynamic panel data models. Especially, I investigate the existence of heterogeneous effects in terms of origin of imports and I take into account of the regional heterogeneity computing the productivity dispersion indicator within each sector and regional macro-area. The analysis is implemented within a comprehensive framework controlling for other potential determinants, such as the technological factors and the domestic competition. My findings show that the competitive pressure from low income countries reduces the productivity heterogeneity across firms, while an opposing impact is detected for the exposure to trade with high income economies, and I argue that two different mechanisms are at work behind these effects.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/37154/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37154.

as in new window
Length:
Date of creation: 15 Jan 2011
Date of revision:
Handle: RePEc:pra:mprapa:37154

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Productivity; Dispersion; Imports; Firm Heterogeneity;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Konings, Jozef & Vandenbussche, Hylke, 2008. "Heterogeneous Responses of Firms to Trade Protection," CEPR Discussion Papers, C.E.P.R. Discussion Papers 6724, C.E.P.R. Discussion Papers.
  2. Petia Topalova & Amit Khandelwal, 2011. "Trade Liberalization and Firm Productivity: The Case of India," The Review of Economics and Statistics, MIT Press, vol. 93(3), pages 995-1009, August.
  3. Hiroyuki Kasahara & Joel Rodrigue, 2005. "Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence," University of Western Ontario, Economic Policy Research Institute Working Papers 20057, University of Western Ontario, Economic Policy Research Institute.
  4. Gábor Békés & Jörn Kleinert & Farid Toubal, 2009. "Spillovers from Multinationals to Heterogeneous Domestic Firms: Evidence from Hungary," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00641328, HAL.
  5. Griffith, Rachel & Redding, Stephen J & Simpson, Helen, 2002. "Productivity Convergence and Foreign Ownership at the Establishment Level," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3765, C.E.P.R. Discussion Papers.
  6. Massimo Del Gatto & Gianmarco I. P. Ottaviano & Marcello Pagnini, 2008. "Openness To Trade And Industry Cost Dispersion: Evidence From A Panel Of Italian Firms," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 48(1), pages 97-129.
  7. Pavcnik, Nina, 2002. "Trade Liberalization, Exit, and Productivity Improvement: Evidence from Chilean Plants," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 69(1), pages 245-76, January.
  8. Halpern, László & Koren, Miklós & Szeidl, Adam, 2005. "Imports and Productivity," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5139, C.E.P.R. Discussion Papers.
  9. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  10. Maliranta, Mika & Nurmi, Satu, 2004. "Do Foreign Players Change the Nature of the Game Among Local Entrepreneurs?," Discussion Papers, The Research Institute of the Finnish Economy 942, The Research Institute of the Finnish Economy.
  11. Schor, Adriana, 2004. "Heterogeneous productivity response to tariff reduction. Evidence from Brazilian manufacturing firms," Journal of Development Economics, Elsevier, Elsevier, vol. 75(2), pages 373-396, December.
  12. Fernandes, Ana M., 2003. "Trade policy, trade volumes, and plant-level productivity in Colombian manufacturing industries," Policy Research Working Paper Series 3064, The World Bank.
  13. Jens Arnold & Giuseppe Nicoletti & Stefano Scarpetta, 2008. "Regulation, Allocative Efficiency and Productivity in OECD Countries: Industry and Firm-Level Evidence," OECD Economics Department Working Papers 616, OECD Publishing.
  14. Keiko Ito & Sébastien Lechevalier, 2009. "The evolution of the productivity dispersion of firms: a reevaluation of its determinants in the case of Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 145(3), pages 405-429, October.
  15. Francesco Daveri & Cecilia Jona-Lasinio, 2005. "Italy's Decline: Getting the Facts Right," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(4), pages 365-410, December.
  16. Paul-Antoine Chevalier & Rémy Lecat & Nicholas Oulton, 2009. "Convergence of Firm-Level Productivity, Globalisation, Information Technology and Competition: Evidence from France," CEP Discussion Papers dp0916, Centre for Economic Performance, LSE.
  17. Ackerberg, Daniel & Caves, Kevin & Frazer, Garth, 2006. "Structural identification of production functions," MPRA Paper 38349, University Library of Munich, Germany.
  18. Elizabeth Kremp & Jacques Mairesse, 1991. "Dispersion and Heterogeneity of Firm Performances in Nine French Service Industries, 1984-1987," NBER Working Papers 3665, National Bureau of Economic Research, Inc.
  19. Muendler, Marc-Andreas, 2004. "Trade, Technology, and Productivity: A Study of Brazilian Manufacturers, 1986-1998," University of California at San Diego, Economics Working Paper Series, Department of Economics, UC San Diego qt6m96c2r7, Department of Economics, UC San Diego.
  20. Adriana Schor, 2004. "Heterogeneous Productivity Response to Tariff Reduction: Evidence from Brazilian Manufacturing Firms," NBER Working Papers 10544, National Bureau of Economic Research, Inc.
  21. Jacques Mairesse & Jordi Jaumandreu, 2005. "Panel-data Estimates of the Production Function and the Revenue Function: What Difference Does It Make?," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 107(4), pages 651-672, December.
  22. Alexander Vogel & Joachim Wagner, 2010. "Higher productivity in importing German manufacturing firms: self-selection, learning from importing, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 145(4), pages 641-665, January.
  23. Oulton, Nicholas, 1998. "Competition and the Dispersion of Labour Productivity amongst UK Companies," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 23-38, January.
  24. Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and productivity in international trade," Working Papers 00-08, Center for Economic Studies, U.S. Census Bureau.
  25. Mika Maliranta, 2005. "R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, Springer, vol. 5(1), pages 27-58, January.
  26. Ralitza Dimova, 2008. "The impact of labour reallocation and competitive pressure on TFP growth: firm-level evidence from crisis and transition ridden Bulgaria," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 22(3), pages 321-338.
  27. Juliette Milgram & Marion Dovis, 2008. "Trade,Tariffs and Total Factor Productivity: The Case of Spanish Firms," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2008-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  28. Becchetti, Leonardo & Trovato, Giovanni, 2002. " The Determinants of Growth for Small and Medium Sized Firms: The Role of the Availability of External Finance," Small Business Economics, Springer, Springer, vol. 19(4), pages 291-306, December.
  29. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
  30. Marcela Eslava & John C. Haltiwanger & Adriana D. Kugler & Maurice Kugler, 2009. "Trade Reforms and Market Selection: Evidence from Manufacturing Plants in Colombia," NBER Working Papers 14935, National Bureau of Economic Research, Inc.
  31. Maurice J.G. Bun & Jan F. Kiviet, 2001. "The Accuracy of Inference in Small Samples of Dynamic Panel Data Models," Tinbergen Institute Discussion Papers 01-006/4, Tinbergen Institute.
  32. Francesco Caselli, 1999. "Technological Revolutions," American Economic Review, American Economic Association, American Economic Association, vol. 89(1), pages 78-102, March.
  33. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
  34. Alvaro Escribano & Rodolfo Stucchi, 2008. "Catching up in total factor productivity through the business cycle : evidence from Spanish manufacturing surveys," Economics Working Papers we085125, Universidad Carlos III, Departamento de Economía.
  35. Matteo Bugamelli & Alfonso Rosolia, 2006. "Productivity and foreign competition," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 578, Bank of Italy, Economic Research and International Relations Area.
  36. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, Elsevier, vol. 68(1), pages 53-78, July.
  37. Paulo Macas Nunes & Tiago Neves Sequeira & Zelia Serrasqueiro, 2007. "Firms' leverage and labour productivity: a quantile approach in Portuguese firms," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(14), pages 1783-1788.
  38. Altomonte Carlo & Barattieri Alessandro & Rungi Armando, 2014. "Import Penetration, Intermediate Inputs and Productivity: Evidence from Italian Firms," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 45-66.
  39. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  40. Iacovone, Leonardo, 2012. "The better you are the stronger it makes you: Evidence on the asymmetric impact of liberalization," Journal of Development Economics, Elsevier, Elsevier, vol. 99(2), pages 474-485.
  41. Falk, Martin & Wolfmayr, Yvonne, 2008. "Services and materials outsourcing to low-wage countries and employment: Empirical evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 19(1), pages 38-52, March.
  42. Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, 08.
  43. Stefanie Haller, 2008. "The Distribution of Productivity in Irish Manufacturing Between 1995 and 2004 – Determinants, Changes and Implications," The Economic and Social Review, Economic and Social Studies, Economic and Social Studies, vol. 39(1), pages 13-38.
  44. Klara Sabirianova & Jan Svejnar & Katherine Terrell, 2005. "Distance to the Efficiency Frontier and Foreign Direct Investment Spillovers," Journal of the European Economic Association, MIT Press, MIT Press, vol. 3(2-3), pages 576-586, 04/05.
  45. Giovanni S.F. Bruno, 2004. "Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models," KITeS Working Papers, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy 159, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2004.
  46. Chad Syverson, 2003. "Product Substitutability and Productivity Dispersion," NBER Working Papers 10049, National Bureau of Economic Research, Inc.
  47. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, Econometric Society, vol. 50(3), pages 649-70, May.
  48. Petia Topalova, 2004. "Trade Liberalization and Firm Productivity," IMF Working Papers 04/28, International Monetary Fund.
  49. Philippe Aghion & Robin Burgess & Stephen Redding & Fabrizio Zilibotti, 2005. "Entry Liberalization and Inequality in Industrial Performance," Journal of the European Economic Association, MIT Press, MIT Press, vol. 3(2-3), pages 291-302, 04/05.
  50. Roberta Gatti & Inessa Love, 2008. "Does access to credit improve productivity?," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 16(3), pages 445-465, 07.
  51. Boyan Jovanovic & Saul Lach, 1995. "Product innovation and the business cycle," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 95-46, Board of Governors of the Federal Reserve System (U.S.).
  52. Kajal Lahiri, 2005. "Analysis of Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 87(4), pages 1093-1095.
  53. Amiti, Mary & Konings, Jozef, 2005. "Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5104, C.E.P.R. Discussion Papers.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37154. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.