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Imports, supply chains, and firm productivity

Author

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  • Carol Newman
  • John Rand
  • Finn Tarp

Abstract

This paper explores the relationship between imports and firm productivity, focusing on imported intermediates. Using firm-level data on over 20,000 manufacturing firms in Vietnam, we find evidence for competition-induced productivity gains from trade. We show that gains in intermediate sectors spill-over to downstream sectors such that firms using more inputs from import-intensive sectors experience higher productivity gains. The evidence indicates that the main source of spill-over is better quality, domestically produced inputs.

Suggested Citation

  • Carol Newman & John Rand & Finn Tarp, 2016. "Imports, supply chains, and firm productivity," WIDER Working Paper Series wp-2016-90, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2016-90
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2016-90.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bjørn Bo Sørensen, 2020. "Turnin' it up a notch: How spillovers from foreign direct investment boost the complexity of South Africa's exports," WIDER Working Paper Series wp-2020-3, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    International trade; Productivity;

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