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Irish firms' productivity and imported inputs

Emanuele Forlani ()

No 2010015, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In this paper, we empirically analyze the evolution of firms’ productivity and how the efficiency changes with variations in the inputs’ origin. Using firm-level information on a sample of Irish firms, we assess the importance of the imported inputs’ quota for a firm’s efficiency, as well as starting import activity. The main findings are that an increase in the intensive margin of imports raises firms’ efficiency of domestic firms; in addition heterogeneous effects across firms are detected. Unlike the findings of most of the literature, there is weak evidence of self-selection in import activity; differently from previous research when we introduce fixed effects, the self-selection disappears. Instead, the few observed firms that start importing raise their productivity compared to non-importing firms; learning by importing is suspected. The results suggest an important policy implication: policies that favor the imports of intermediates enhance the productivity of domestic firms, making them more competitive in the international markets.

Keywords: firms' productivity; inputs; import; Ireland (search for similar items in EconPapers)
JEL-codes: D24 F10 F14 L25 (search for similar items in EconPapers)
Date: 2010-04-01
New Economics Papers: this item is included in nep-eff and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Irish Firms’ Productivity and Imported Inputs (2017) Downloads
Working Paper: Irish firms’ productivity and Imported Inputs (2012) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2010015

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