Two-way traders: searching for complementarities between exports and imports in a developing country

Segundo Camino-Mogro and Alberto López

Applied Economics Letters, 2021, vol. 28, issue 10, 856-859

Abstract: The international trade literature has extensively analysed the role of exports and imports as productivity shifters. However, most studies analyse one of these two activities in isolation, and empirical evidence on this matter to a large extent refers to developed countries. We analyse the relevance of the interaction between exports and imports to determine productivity by applying a test of complementarity between these activities for a developing country. Using firm-level data from Ecuador, we find evidence suggesting that there is complementarity between exports and imports in determining productivity.

Date: 2021
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DOI: 10.1080/13504851.2020.1784379

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