Trade, productivity, and services input intensity

Bernard Hoekman, Marco Sanfilippo (), Filippo Santi () and Rohit Ticku ()
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Marco Sanfilippo: University of Turin and Collegio Carlo Alberto
Filippo Santi: University of Bologna
Rohit Ticku: European University Institute

Review of World Economics (Weltwirtschaftliches Archiv), 2025, vol. 161, issue 1, No 9, 309-337

Abstract: Abstract Using rich administrative microdata on Ugandan firms, we investigate the response of productivity to trade participation for firms in all sectors of the economy, and the moderating role of services input intensity. We find that companies that participate in trade, especially through importing, display a productivity premium. Firms that export are more productive only for a sub-sample spanning the manufacturing sector. We do not find evidence that using service inputs more intensively enhances the relationship between trade participation and firm productivity. Rather, we find some evidence that a higher share of spending on services inputs attenuates the positive relationship between trade status and productivity. This suggests that the quality of available services may not be up to the standard required to be internationally competitive.

Keywords: Trade; Firms; Services (search for similar items in EconPapers)
JEL-codes: D22 E62 F14 H32 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10290-024-00548-2

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