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Import, Export and Multinationality. Evidence from Swedish Firms

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  • Castellani, Davide

    () (Henley Business School, University of Reading)

  • Fassio, Claudio

    () (CIRCLE, Lund University)

Abstract

This paper studies the role of imported inputs in explaining firms’ export behaviour. Unlike most of the existing literature we are also able to control for the participation of domestic firms to multinational networks. This allows us to test to what extent the recurrent evidence that importing foster exporting activity is instead a figment of the fact that importers are also part of multinational groups. Our evidence, based on Swedish manufacturing firms, suggests that imported inputs, rather than multinationality, are a key determinant of firms’ export propensity and product scope. This result is particularly strong for SMEs, and it is driven by imported intermediates and (to a lesser extent) capital goods.

Suggested Citation

  • Castellani, Davide & Fassio, Claudio, 2016. "Import, Export and Multinationality. Evidence from Swedish Firms," Papers in Innovation Studies 2016/30, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2016_030
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    References listed on IDEAS

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    Cited by:

    1. Castellani, Davide & Fassio, Claudio, 2017. "Export innovation: The role of new imported inputs and multinationality," Papers in Innovation Studies 2017/16, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

    More about this item

    Keywords

    importing; exporting; multinational enterprises; Sweden;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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