Import Penetration, Intermediate Inputs and Productivity: Evidence from Italian Firms

Carlo Altomonte (), Alessandro Barattieri and Armando Rungi

No DYNREG23, Papers from Economic and Social Research Institute (ESRI)

Abstract: We test the impact of import penetration on the productivity of a sample of roughly 35,000 Italian manufacturing firms operating in the period 1996-2003, considering the impact on productivity of both import penetration in the same industry and import penetration in the up-stream industries. We find that import penetration has a positive effect on productivity, but the effects are three times as large for import penetration in up-stream industries. Trade-related variables do not account however for the bulk of variation in individual firms' TFP.

Keywords: DYNREG; import penetration; intermediate inputs; productivity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff
Date: Written
Note: DYNREG Research Project - Dynamic Regions in a Knowledge-Driven Global Economy: Lessons and Policy Implications for the European Union
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