What You Import Matters

Jishun Zhou and Xiaoyu Hong

Emerging Markets Finance and Trade, 2023, vol. 59, issue 8, 2456-2469

Abstract: This study examines whether the type of imported good affects manufacturing upgrading. Based on city-level data for China from 2003 to 2013, we show that the expansion of imports significantly promotes the upgrading of the manufacturing industry. Parts imports, capital goods imports, and consumer goods imports are positively associated with manufacturing upgrading, while primary goods imports have a negative impact. The mechanism test shows that technology improvement and consumption expansion are important channels. The regression results at the disaggregated industry level further confirm these channels.

Date: 2023
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DOI: 10.1080/1540496X.2023.2181070

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