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Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence

  • Joel Rodrigue
  • Hiroyuki Kasahara

This paper examines whether importing intermediate goods improves plant performance. While addressing the issue of simultaneity of a productivity shock and decisions to import intermediates, we estimate the impact of the use of foreign intermediates on plants' productivity using plant-level Chilean manufacturing panel data. We found that the switching from being a non-importer to being an importer of foreign intermediates can improve productivity by 3.4 to 22.5 percent

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Paper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 511.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:nasm04:511
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