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Import, Export and Multinationality. Evidence from Swedish Firms

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  • Davide Castellani

    (Henley Business School, University of Reading)

  • Claudio Fassio

    (CIRCLE, Lund University, Sweden and BRICK, Collegio Carlo Alberto, Torino, Italy)

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

  • Davide Castellani & Claudio Fassio, 2016. "Import, Export and Multinationality. Evidence from Swedish Firms," John H Dunning Centre for International Business Discussion Papers jhd-dp2016-08, Henley Business School, University of Reading.
  • Handle: RePEc:rdg:jhdxdp:jhd-dp2016-08
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    Cited by:

    1. Mauro Caselli, 2018. "Do all imports matter for productivity? Intermediate inputs vs capital goods," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 285-311, August.
    2. Castellani, Davide & Fassio, Claudio, 2019. "From new imported inputs to new exported products. Firm-level evidence from Sweden," Research Policy, Elsevier, vol. 48(1), pages 322-338.
    3. Castellani, Davide & Fassio, Claudio, 2017. "Export innovation: The role of new imported inputs and multinationality," Papers in Innovation Studies 2017/16, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    importing; exporting; multinational enterprises; Sweden;
    All these keywords.

    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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