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Imports of capital goods and enterprise performance: a firm-level analysis in China

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  • C. Simon Fan
  • Yifan Hu

Abstract

Much recent research on openness and productivity has shifted attention away from regions and countries to firms. Most of those studies have focused on exports and productivity. However, empirical study on the relationship between imports and productivity with firm-level data is scarce. This note attempts to help fill this gap using firm-level data in China. Controlling firms' other characteristics, we find that firms with imports of capital goods have higher productivity. It implies that, in a developing country, firms utilizing foreign products, which embody foreign technologies, have better performance than those only using domestic technologies.

Suggested Citation

  • C. Simon Fan & Yifan Hu, 2008. "Imports of capital goods and enterprise performance: a firm-level analysis in China," Applied Economics Letters, Taylor & Francis Journals, vol. 15(5), pages 391-394.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:5:p:391-394
    DOI: 10.1080/13504850600690004
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    Cited by:

    1. Srinivas Kolluru & Pundarik Mukhopadhaya, 2017. "Empirical Studies on Innovation Performance in the Manufacturing and Service Sectors Since 1995: A Systematic Review," Economic Papers, The Economic Society of Australia, vol. 36(2), pages 223-248, June.
    2. Sharma, Chandan & Mishra, Ritesh Kumar, 2015. "International trade and performance of firms: Unraveling export, import and productivity puzzle," The Quarterly Review of Economics and Finance, Elsevier, vol. 57(C), pages 61-74.

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