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Imports, Productivity and Origin Markets: The Role of Knowledge‐intensive Economies

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  • Hans Lööf
  • Martin Andersson

Abstract

We investigate the impact of international knowledge transfers on productivity at the firm level. The flow of knowledge across borders is measured through imports from different markets. Using a dynamic panel GMM estimation on Swedish manufacturing firms with 10 or more employees over the period 1997–2004, three important results emerge. First, there is an instantaneous positive effect of imports on productivity. Second, the evidence points towards a distinct role of imports from the G7 countries, which accounts for 80 per cent of global R&D. Third, sensitivity analyses show that G7 imports are also important for small and non‐affiliated firms.

Suggested Citation

  • Hans Lööf & Martin Andersson, 2010. "Imports, Productivity and Origin Markets: The Role of Knowledge‐intensive Economies," The World Economy, Wiley Blackwell, vol. 33(3), pages 458-481, March.
    • Handle: RePEc:bla:worlde:v:33:y:2010:i:3:p:458-481
    DOI: 10.1111/j.1467-9701.2010.01263.x
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    More about this item

    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, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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