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Imports Complementarities in European Manufacturing

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  • Niccolò Cannarsa
  • Jean-Marie Grether

Abstract

Do technologies embedded in imports boost domestic productivity? This paper investigates empirically the role of complementarities between absorptive capacity and imports. Different import categories are combined with different proxies for absorptive capacity. The database covers 18 manufacturing industries across 16 European countries over the 2008-2014 period. Our findings suggest that complementarities do exist but are limited to certain types of imports (capital goods) and certain proxies of absorptive capacity (education level). These findings are robust to altering specifications or controlling for endogeneity, and reinforced when the potential non-linearity of the interaction is considered.

Suggested Citation

  • Niccolò Cannarsa & Jean-Marie Grether, 2024. "Imports Complementarities in European Manufacturing," IRENE Working Papers 24-07, IRENE Institute of Economic Research.
    • Handle: RePEc:irn:wpaper:24-07
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    References listed on IDEAS

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    More about this item

    Keywords

    Capital Imports; Intermediate Imports; Absorptive Capacity; Labour Productivity;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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