Imports and TFP at the Firm Level: The Role of Absorptive Capacity

Patricia Augier (), Olivier Cadot and Marion Dovis ()

No 1016, CEPREMAP Working Papers (Docweb) from CEPREMAP

Abstract: This paper estimates the effect of the decision to import intermediate goods and capital equipment on Total Factor Productivity (TFP) at the firm level on a panel of Spanish firms (1991-2002). We use two alternative approaches. In the first, we estimate TFP and apply a diff-in-diff estimator with a control group constructed by propensity-score matching. In the second, direct method, we estimate TFP with imported inputs as a state variable in one stage. Both approaches show that the effect of a firm’s decision to source intermediates and capital equipment abroad on its TFP depends critically on its capacity to absorb technology, measured by the proportion of skilled labor.

Keywords: Productivity; TFP; Imports; Olley-Pakes; Absorptive Capacity (search for similar items in EconPapers)
JEL-codes: F2 O1 O2 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://www.cepremap.fr/depot/docweb/docweb1016.pdf (application/pdf)

Related works:
Journal Article: Imports and TFP at the firm level: the role of absorptive capacity (2013)
Journal Article: Imports and TFP at the firm level: the role of absorptive capacity (2013)
Working Paper: Imports and TFP at the firm level: the role of absorptive capacity (2013)
Working Paper: Imports and TFP at the Firm Level: The Role of Absorptive Capacity (2012)
Working Paper: Imports and TFP at the Firm Level: The Role of Absorptive Capacity (2012)
Working Paper: Imports and TFP at the Firm Level: The Role of Absorptive Capacity (2009)
Working Paper: Imports and TFP at the Firm Level: The Role of Absorptive Capacity (2009)
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