Imports Complementarities in European Manufacturing

Niccolo Cannarsa and Jean-Marie Grether

No 24-07, IRENE Working Papers from IRENE Institute of Economic Research

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.

Keywords: Capital Imports; Intermediate Imports; Absorptive Capacity; Labour Productivity (search for similar items in EconPapers)
JEL-codes: F14 L60 O4 (search for similar items in EconPapers)
Pages: 32 pages.
Date: 2024-12
New Economics Papers: this item is included in nep-eec, nep-eff and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:irn:wpaper:24-07

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