The enhancing effect of imports of intermediate inputs on firms' exports

Francisco Requena Silvente, Guadalupe Serrano and Raúl Mínguez

The World Economy, 2023, vol. 46, issue 9, 2654-2683

Abstract: We investigate the impact of imports of intermediate inputs on export value and portfolio among Spanish regular two‐way trade of manufacturing firms over the period 1997–2018. After controlling for firm characteristics and addressing endogeneity, we find that firms that import intermediate inputs from non‐EUEFTA countries enhance the volume and scope of their EU15 exports. The magnitude of the impact is similar for high‐income countries and low‐income countries and there are no changes in sourcing patterns before or after the financial crisis.

Date: 2023
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