Imported Intermediate Inputs, R&D, and Productivity at Firm Level: Evidence from Indian Manufacturing Industries

Chandan Sharma

The International Trade Journal, 2014, vol. 28, issue 3, 246-263

Abstract: This article examines the effects of imported intermediary inputs and in-house research and development (R&D) on productivity growth, using firm-level data from Indian manufacturing industries for the period 2000-09. For this purpose, we adopted two empirical frameworks: production function and growth accounting method. The estimated results from the production function framework suggest that the impact of imported intermediary goods on output is reasonably sizable. The role of R&D activities under this framework is found to be insignificant. The analysis based on the growth accounting suggests that total factor productivity of firms is linked with import and R&D activities.

Date: 2014
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DOI: 10.1080/08853908.2014.891958

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