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Trade, productivity, and services input intensity

Author

Listed:
  • Bernard Hoekman

    (European University Institute, CEPR, CITP and ERF)

  • Marco Sanfilippo

    (University of Turin and Collegio Carlo Alberto)

  • Filippo Santi

    (University of Bologna)

  • Rohit Ticku

    (European University Institute)

Abstract

Using rich administrative microdata on Ugandan firms, we investigate the response of productivity to trade participation for firms in all sectors of the economy, and the moderating role of services input intensity. We find that companies that participate in trade, especially through importing, display a productivity premium. Firms that export are more productive only for a sub-sample spanning the manufacturing sector. We do not find evidence that using service inputs more intensively enhances the relationship between trade participation and firm productivity. Rather, we find some evidence that a higher share of spending on services inputs attenuates the positive relationship between trade status and productivity. This suggests that the quality of available services may not be up to the standard required to be internationally competitive.

Suggested Citation

  • Bernard Hoekman & Marco Sanfilippo & Filippo Santi & Rohit Ticku, 2025. "Trade, productivity, and services input intensity," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(1), pages 309-337, February.
    • Handle: RePEc:spr:weltar:v:161:y:2025:i:1:d:10.1007_s10290-024-00548-2
    DOI: 10.1007/s10290-024-00548-2
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    More about this item

    Keywords

    Trade; Firms; Services;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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