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Does the use of imported intermediates increase productivity? Plant-level evidence

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  • Kasahara, Hiroyuki
  • Rodrigue, Joel

Abstract

This paper examines whether importing intermediate goods improves plant performance. While addressing the issue of simultaneous productivity shocks and decisions to import intermediates, we estimate the impact foreign intermediates have on plants' productivity using plant-level Chilean manufacturing panel data. Across different estimators, we find evidence that becoming an importer of foreign intermediates improves productivity.

Suggested Citation

  • Kasahara, Hiroyuki & Rodrigue, Joel, 2008. "Does the use of imported intermediates increase productivity? Plant-level evidence," Journal of Development Economics, Elsevier, vol. 87(1), pages 106-118, August.
  • Handle: RePEc:eee:deveco:v:87:y:2008:i:1:p:106-118
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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